Loading...
2024.08.07 Special City Council MeetingSPECIAL OTSEGO CITY COUNCIL MEETING WEDNESDAY, AUGUST 7, 2024 1:00 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 1:04 PM. Roll Call: Mayor Jessica Stockamp and Councilmembers: Brittany Moores, Tina Goede, Jeff Dahl, and Ryan Dunlap. City Staff: City Administrator/Finance Director Adam Flaherty, Assistant City Administrator/Human Resources Sabrina Hille, Emergency Services Director Daryl Rausch, IT Manager Ben Boyd, Streets Operation Manger Kevin Lamson, Parks and Recreation Director Nick Jacobs, and City Clerk Audra Etzel. 1. 2025 Budget, Tax Levy and Capital Improvement Plan Review. City Administrator/Finance Director Flaherty reviewed the budget meeting #3 materials included in the packet. Staff is seeking Council input during these budget review meetings to move the budgeting process forward effectively and efficiently. Police Services Flaherty said the police services per hour rate will increase from $105 to $110 in 2025, the hours of coverage will be the same, and that the one-time assessment will not carry over into 2025. CM Dahl asked if surrounding cities have similar contracted hours. Flaherty said he is unaware of the contracted hours for the surrounding cities. Mayor Stockamp said the Wright County Sheriff's office makes hourly recommendations for each city. Public Safety Commission Flaherty said no change proposed to the budget. CM Dunlap asked if the Public Safety Commission had a fund balance. Flaherty noted that fund balances are not tracked by department, rather at the fund level. CM Dahl asked about increasing the meeting stipend. The Council agreed to discuss all commission members stipends at a future meeting. Fire Protection Flaherty reviewed the proposed fire department contracts. Mayor Stockamp asked what the reason was for the increase for Albertville. Flaherty said capital improvements (generator, truck, and air packs) were the main items. CM Dunlap asked about the formula used to calculate. Flaherty said each contract is slightly different but includes factors such as tax capacity, market value, call percentages, and budgets for the contracted departments. CM Dunlap asked where the tax capacity number comes from. Flaherty said the tax capacity is provided by Wright County. CM Dunlap requested staff distribute the information to the City Council for the proposed 2025 contracts and the existing 2024 contracts. CM Dunlap asked Page 1 of 7 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 71 2024 about the staffing increases. Flaherty said this is for benefits, cost of living adjustment (COLA), step increase, and PERA; there is a decrease for workers compensation. EmerraencV Management Rausch said Xcel Energy will be donating their sirens over to the City; there are five sirens in the City limits. Flaherty said the supply budget has increased along with maintenance due to the additional sirens. CM Goede asked if there will be education shared with the residents. Rausch said Wright County will be notifying the residents of the change. Council would like to know if the siren on the west end in the township is going to be accepted, if not, they would like to look at options. Rausch said the donated sirens will need to be inspected and serviced going forward. Flaherty said ten 800mhz radios are being donated from Wright County. CM Dunlap asked what determines if an expense is Fire or Emergency Management. Flaherty outlined what would typically be within Emergency Management or Fire Protection budgets. Information Technology IT Manger Boyd reviewed the IT budget and presentation. Mayor Stockamp asked about the replacement computers. Boyd said each replacement will include the computer, two monitors, and a docking station; the docking station will be universal. CM Moores asked if insufficient equipment will be replaced sooner. Boyd said future purchases will have better capabilities. CM Moores asked with will happen to the old equipment. Boyd said old equipment will be donated per the IT Policy. CM Dunlap asked about clearing the data before recycling the equipment. Boyd said there is a DOD procedure in the IT Policy, CM Dunlap asked about the wages budgeted and funding purchases. Flaherty said the wage for 2024 was an estimate due to being a new position and 2025 is actual, and the funding is expensed to a department or building, not a percentage based on the department usage. Flaherty said large capital items are not funded through the General Fund Budget. Boyd said there is a schedule to replace computers, noting some computers will remain in use. Streets Maintenance Streets Manager Lamson reviewed the Streets budget and presentation. CM Dunlap asked about the amount budgeted for Pavement Management. Flaherty noted that is within the Capital Improvement Plan and that the estimated amount for 2025 is lower due to no renewal projects scheduled in 2025, only maintenance. Lamson said streets are improving and the base line number for PCI ratings are increasing. Mayor Stockamp asked about the proposed building for public works. Flaherty said the building will be reviewed further by the Public Works Subcommittee and brought back for City Council consideration later this year. CM Dunlap asked about other options vs. salt application. Lamson said the MPCA may drive the trend to go from salt; eventually the City may need to purchase modified equipment. Page 2 of 7 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 71 2024 Mayor Stockamp asked about the wage allocation. Flaherty said the storm water portion is allocated to that respective fund from this department. CM Dunlap asked why there is a change to the gravel. Lamson said staff has been using Class 5, where they are now using a Class 5 bonded and it is better material that retains moisture, but it costs more. Mayor Stockamp asked if the residents have noticed a difference. Lamson said he has not had any feedback from the residents', noting staff has noticed the difference. CM Dunlap asked about the cost for the compost site. Lamson said there is so much compost material, a contractor is required to come out annually and process the material; two-thirds of the cost is paid by the City of Otsego. CM Dunlap asked about the maintenance of the site. Lamson said the Otsego staff does daily maintenance. City Hall &Public Works Building Flaherty reviewed the City Hall & Public Works Building budget. CM Dunlap asked what is the issue with the fueling island. Lamson said the tanks are fine, it is the software, communications, and pumps; he would recommend a capital improvement purchase in the future. If the pumps are down, staff needs to purchase fuel from a local fueling station. Lamson said the City does get a discount for fuel having a tank. Mayor Stockamp asked if the off-peak heating and cooling is worth the savings. Lamson said equipment has been updated and the surges from the off-peak still cause issues with equipment causing more service calls. Flaherty said staff will continue to monitor if capital equipment is needed and if remaining on off-peak is beneficial. Old Township Site Flaherty reviewed the Old Township Site budget. Lamson said the boiler on site is budgeted to be inspected. Street Lights Flaherty reviewed the Street Lights budget. CM Dunlap asked about the two -percent inflation. Flaherty said the increase is to cover new lights and inflation. CM Dunlap asked about street lights being leased. Flaherty said the developer pays for the installation of a street light and the on -going lease is paid by the City. Fleet Maintenance Flaherty reviewed the Fleet budget. Lamson said GPS has been a valuable tool for tracking equipment and addressing resident calls. CM Goede asked about the contracted services increase. Lamson said contacting services are needed due to the mechanics work load and certain equipment needing to be contracted out. Mayor Stockamp asked for further explanation on the increase. Lamson said the parts to repair the equipment is so expensive, some equipment is so specialized, and the variety of equipment continues to expand; most repairs are reactive. Page 3 of 7 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 7, 2024 CM Goede asked about paint striping for the streets. Lamson said the striping is contracted and that 50% of the streets are done each year and that this is budgeted within the Pavement Management fund. Mayor Stockamp noted there are several streets that have faded stripping. Prairie Center Flaherty reviewed the Prairie Center budget. Mayor Stockamp asked about the increase in cleaning services. Jacobs said the current provider is able to add an additional day, allowing for a cleaner facility. Council asked staff to get bids for garbage service to see if the pricing is competitive. CM Dahl asked about the space at Prairie Center. Jacobs said it is a challenge to schedule events with the City meetings that are scheduled. CM Dahl asked about how the building could be shifted to be able to accommodate more Park and Recreation events. Park Maintenance Flaherty reviewed the Park Maintenance budget. Mayor Stockamp asked why the playground costs are so expensive. Jacobs said costs are not decreasing for equipment. CM Dunlap asked about the funds for Friends of the Mississippi River. Flaherty said staff is working on a process on how to distribute the funds. CM Dunlap asked about maintenance of the parks. Jacobs said the new Friedrich Park does have some cost savings with no irrigation, otherwise the maintenance still needs to meet standards. CM Dahl asked how it is determined when to paint courts. Jacobs said staff monitor and paint as needed. Recreation Flaherty reviewed the Recreation budget. CM Dunlap asked about the revenue from recreation fees. Flaherty said the forecasted revenue is conservative and could be higher, this amount can always be increased through the budget process. Jacobs said with the growth, Prairie Festival an increased need for more port -a -potties and additional hand washing stands. Council discussed the revenues received from sponsorship and fees collected. Parks and Recreation Commission Council will review the commission stipend. Jacobs supports an increase to the stipend. Administration and Elections Etzel reviewed the Administration and Election budgets and presentation. CM Dunlap asked about the scanning position's duties. Etzel said there are many documents in storage that will need to be sorted prior to scanning or disposal if no longer needed. CM Dahl asked about the notary services. Etzel noted staff that are notaries are able to sign official documents for residents and city documents. Human Resources and Communications Assistant City Administrator/Human Resources Hille reviewed the Human Resources and Communication budget and presentation. CM Moores asked about the leadership training. Hille said the training is done as a group, but if a department head is unavailable to attend, there is an option to receive the training at a later date. Mayor Stockamp asked how communications will be shared. Hille said staff is researching notification options and logistics Page 4 of 7 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 71 2024 on which staff member will send the message. Mayor Stockamp asked about the education budgeted. Hill said there are costs to attend trainings and conferences. CM Dunlap asked about the newsletter costs. Flaherty said the amount budgeted continues to change as new homes are added and the City grows. CM Goede asked about other ways to create or distribute the newsletter. Hille said staff will continue to look at other options and outlined the City is under contract for one additional year. City Council Flaherty reviewed the City Council budget, noting any change to Council pay would not go into effect until after a City election. Mayor Stockamp said the Mayor's Association fee increased to $300, Flaherty noted he will adjust the budget accordingly. City Administrator Flaherty reviewed the City Administrator budget and noted there are no significant changes. Assessing Flaherty reviewed the Assessing budget. CM Dunlap asked about the per parcel costs. Flaherty said the cost has increased over the last few years but that there is no change in the per parcel rate for 2025. Finance Flaherty reviewed the Financing budget. Mayor Stockamp asked about the proposed software increase. Flaherty noted the software provider now offers an expanded cloud -based option that allows all department heads to access and submit project requests which will make the CIP budget more efficient. CM Dunlap asked why there was no part-time wages budgeted. Flaherty noted that for 2025 there are no part-time positions within the budget, and that the current temporary position is being paid from the full-time wages while an employee is on leave. Leal Flaherty reviewed the Legal Budget. CM Dunlap asked about the proposed increase. Flaherty noted the budget is an estimate based on prior and current year actuals and that the contract includes a 3% hourly rate inflation annually. Building Safety Flaherty reviewed the Building Safety budget. No comments. Animal Control Flaherty reviewed the Animal Control budget. No comments. Engineering Flaherty reviewed the Engineering Budget. No comments. Page 5 of 7 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 71 2024 Heritage Preservation Commission Flaherty reviewed the Heritage Preservation Commission Budget. Mayor Stockamp asked if the training funds needed to be increased. Flaherty noted that while the current year was more, the prior years were less and feels on average the budget is sufficient and that grant funds often offset this amount. Planning Commission Flaherty reviewed the Planning Commission Budget. No comments. Planning Flaherty reviewed the Planning Budget and noted the contract includes an hourly inflation of 3% annually. No comments. Economic Development Flaherty reviewed the Economic Development Budget. CM Dunlap asked if additional funds need to be included in the budget. Flaherty said more funds can be included and the fund can be renamed to be more encompassing. CM Dunlap questioned if the EDA should have an advisory commission to work on projects. Mayor Stockamp said an advisory commission has been used in the past. Flaherty advised on not having a separate finance account at this time and continue to have expenses go through the general fund Flaherty will research options and Interfund Transfers Flaherty reviewed the interfund transfer budget and that there are none proposed for 2025. No comments. Fund Balance Policy Flaherty reviewed the packet materials calculating the General Fund Balance to the City Policy. City staff is not recommending a transfer in accordance with the policy at this time. Revenues Flaherty recommended the City Council defer review of the revenue budget to a future meeting given the time of day and that it will pair well with discussion of the preliminary property tax levy. Flaherty requested a special meeting on August 26th at 5:30 to continue the 2025 budget discussions. The Preliminary Levy will need to be adopted in September. CM Dunlap asked about the Capital Improvement Budget. Flaherty noted that the Council will review the funding components of the CIP at the August 26 meeting and that the Subcommittees have reviewed the proposed expenditures, and that additional review will be included as part of a budget meeting later in the process. Mayor Stockamp motioned to schedule a special meeting on August 26, 2024, at 5:30PM, seconded by CM Dunlap All in favor. Motion carried 5-0. Page 6 of 7 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING AUGUST 7, 2024 2. Adjourn. CM Dunlap motioned to adjourn at 6:07 PM, seconded by CM Dahl. All in favor. Motion carried 5-0. Minutes prepared by City Clerk, Audra Etzel. City of Otsego: t ATTEST: . p. Audra Etzel, City Clerk i J��sica Stocl<amp, Mayor Page 7 of 7