HomeMy WebLinkAbout06-01-2020 Council Work Session MinutesCITY COUNCIL WORK SESSION
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
4 DATE June 1, 2020
5 TIME STARTED 6:00 p.m.
6 TIME ENDED : 9:00 P.M.
7 MEMBERS PRESENT Council Member Stoesz, Lyden, Ruhland,
8 Cavegn and Mayor Rafferty
9 MEMBERS ABSENT None
10 Staff members present: City Administrator Jeff Karlson; Community Development
11 Director Michael Grochala; City Engineer Diane Hankee; Human Resources Manager
12 Karissa Bartholomew; Director of Public Safety John Swenson; Public Services Director
13 Rick DeGardner; Finance Director Sarah Cotton; Utilities Supervisor Justin Williams
14 1. Review 2019 Annual Audit —Finance Director Cotton introduced Andy Hering,
15 of Redpath and Company to present the results of the 2019 internal audit. Mr. Hering
16 reviewed a PowerPoint presentation that is on file. Overall it is a clean audit with good
17 results.
18
19 The council discussed investment earnings. Ms. Cotton noted that investment earnings
20 were up in 2019 but unrealized. She has provided the exact amount to the council.
21 There is no change planned in the City's investment strategy but it should be understood
22 that earnings are varied based on the economy and the market.
23
24 When Mayor Rafferty noted the ebb and flow of the budget reserve balance, Ms. Cotton.
25 took the opportunity to overview her recent discussion with a rating agency. It was noted
26 that the City has used general fund reserve for budgetary purposes for several years,
27 including in the 2020 budget, and that is seen somewhat negatively by the rating agencies
28 especially due to the economy. Mayor Rafferty noted that those funds are surplus and the
29 council has viewed their use as a return to the taxpayers. Councilmember Stoesz asked if
30 there is guidance from the rating agencies on a good use of reserve. Ms. Cotton said it's
31 important to follow established policy and the City is doing that; the agencies want to see
32 the City in a flexible position because of the current pandemic. Ms. Cotton added that
33 she has spoken with Anoka County and has been informed that property tax collection
34 remains strong.
35
36 Councilmember Ruhland questioned the drop in the Sewer Fund and Ms. Cotton
37 suggested that would probably be related to an increase in sewer access charged by the
38 Metropolitan Council. Councilmember Ruhland also asked if there are savings
39 anticipated in this year's budget and Ms. Cotton reviewed some possibilities but
40 suggested that she anticipates the City meeting forecasts but probably not exceeding
41 them.
42
43 The council thanked staff for their work in bringing forward the report. Ms. Cotton gave
44 a shout out to the Finance Department staff for their work preparing for the audit.
CITY COUNCIL WORK SESSION
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45 2. Compensation Study Presentation — Human Resources Manager Bartholomew
46 introduced Saddo Abboud of Keystone Compensation Group, LLC, who presented the
47 results of a compensation study for the City. Mr. Abboud noted that he has been doing
48 this type of work for thirty years and has spent the past several months working on the
49 City's report. Mr. Abboud reviewed his written report (on file). He highlighted:
50
51 - Page 9, "excluded" instead of "included";
52 - The objectives of the study point to the reason for the study.
53 - Important factors are considered in looking at each job;
54 - Pay equity is required by the State of Minnesota;
55 - Competiveness within the market (attract and retain employees, compliant with the
56 law);
57 - Comparison with the private sector is not considered;
58 - How the City (staff) set strategy for study, definitions to be used, collected data;
59 - Strategy included identifying the market, positioning within the chosen market, and how
60 you will establish pay (years of service/step pay); administration of program;
61 - The current compensation program compared to a new program;
62 - Positions established within grades and step system for grades;
63 - The human resources manager would be trained to work within the new system rather
64 than having pay outside person whenever there's a new job;
65 - The current rates of pay are 97% within the market and therefore considered
66 competitive; the maximums do lag the market by 6% and the minimums 8% below
67 market:
68 - How current employees would transition into the new grade schedule and the budget
69 impact.
70
71 Councilmember Stoesz asked about the ability to establish an appropriate salary level for
72 an intern or someone doing duties but learning. Mr. Abboud explained that this schedule
73 would relate to permanent employees and assumes an employee would the requirements
74 of the job upon starting.
75
76 Mayor Rafferty asked about how benefits are considered within the realm of a
77 compensation study. Mr. Abboud explained why it's not regular or really possible to
78 include benefits in this type of study.
79
80 Councilmember Stoesz asked about the value of a closed versus open system of
81 knowledge about what everyone is being paid. Mr. Abboud replied that it's basically
82 open for government because the information is public data; for the private sector it is
83 much different.
84
85 Moving ahead, the council will anticipate that staff will present information using the
86 study probably as part of budget discussions.
87 3. Reducing Water Demand Due to Manganese Levels - Public Services Director
88 DeGardner and Utilities Supervisor Williams reported that manganese levels continue to
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CITY COUNCIL WORK SESSION
APPROVED
89 be monitored and communication efforts with the public also continue. Mr. DeGardner
90 noted water treatment discussions recently and a report coming forward on that subject.
91 He explained that initially the City moved to utilizing only wells with lower manganese
92 levels but as summertime demand rises, it is anticipated that other wells will need to be
93 utilized and manganese levels will rise. Staff is suggesting options for reducing water
94 demand in order to lessen the use of water and therefore keep manganese levels down
95 over the next several months. The options include increased communication with
96 residents, extend the watering ban, or enact a complete watering ban. Staff is seeking the
97 council's direction. When asked, staff indicated that they feel option two is viable. Mr.
98 Williams said he'd like to give people the opportunity to comply voluntarily to bring
99 demand into a more level situation. Use is being monitored every day. A letter out to
10o the public costs about $3,000 each occurrence.
101
102 Councilmember Ruhland suggested an article in the Quad Press, use of social media, etc
103 to really get the word out. Finance Director Cotton noted that the City does not have all
104 the communication tools to best get the word out. Councilmember Stoesz recommends
105 adding something like a graph to teach and reach people on this matter.
106
107 Staff will proceed with option two, extending the watering ban.
108 4. Birc1� Street Reconstruction —Community Development Director Grochala
109 updated the council on the project. Coming forward from previous council discussions,
110 the matter of a pedestrian flasher and addition of landscaping remained to be determined.
Ill
112 Pedestrian Flasher — as called for in the associated joint powers agreement with Anoka
113 County, they have reviewed the addition of a flasher at the Tomahawk Trail roundabout
i 14 (the main intersection at the school) and a report on the matter is included in the staff
115 report. The roundabout itself and traffic data was reviewed. With any roundabout there
116 is an abundance of signage. He explained the clearance of the crossings and safety zones
1 17 for pedestrians. The county report doesn't indicate that a flasher is required however
118 because it is a school crossing, additional measures can be considered. Basically, if
119 included, it would be at the City's expense and would still need to meet county standards.
120 The cost is approximately $10,000. Options are to include it and fund it or to include the
12l conduit (probably at no cost to the City) and decide later if it is needed. Mr. Grochala
122 recommends that the City include it in the project, look for other funds, and eventually
123 pay what is needed. Councilmember Stoesz asked staff to also look at the possibility of
124 adding lighting to the tunnel in that vicinity.
125
126 Landscaping —examples of landscaping options were reviewed (basic non -irrigated, a
127 shrub and mulch treatment, and a more extensive treatment). If there is to be
128 landscaping, there is a long term commitment to maintenance and that belongs to the City
129 and it could be complicated. Another consideration is that this is a main corridor of the
13o City so appearance is a consideration. If the Council wishes to proceed, he would
131 recommend having the City engineer look at the options and attached costs. There is a
132 deadline to include the plans in the overall project plans.
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133
134 Mayor Rafferty wondered about the possibility of having a ring of mulch and allowing for
135 some planting — would be low maintenance. Councilmember Stoesz asked about adding
I3 a flag pole and staff suggested it would require regular ups and downs so that could be a
137 concern.
138
139 Staff will put together concepts and bring them back to the council.
140 5. 5-Year Street Reconstruction Plan — Communit,� Development Director
141 Grochala reviewed his written report including overviewing the elements of the City's
142 whole street maintenance program. The street reconstruction element deals with those
143 streets most in need and represent larger projects. Costs are normally covered by bond
144 funds. Projects are selected based on conditions, budget and inclusion in a full fifteen
145 year plan. Mr. Grochala reviewed the categories of streets and explained the regular
146 review process utilized to rate streets. He reviewed the plan going forward. Currently,
147 staff will seek authorization for the next year's element only; the 2024 program is
]48 included in the plan but future authorization would be required.
149
150 Councilmember Cavegn noted the importance of including streets on the north side of the
151 City where there are certainly streets in need of repair or reconstruction. He'd like to see
152 the City find more ways to find revenue to get to all the needs in this area.
153
154 The council concurred the plan will move forward with a public hearing scheduled for
155 June 22, 2020.
156 6. 2020 EIection Update -City Administrator Karlson reviewed the written report.
157
158 Mayor Rafferty noted the possibility of raising the election judge salary and would
] 59 welcome more information going forward on that matter.
160 7. Council Updates on Boards/Commissions —Mayor Rafferty provided a brief
161 update on the Vadnais Lakes Area Water Management Organization.
162
163 Councilmember Ruhland noted that he's been appointed to serve on Anoka County's
164 Board of Equalization.
165 8. Review Regular Agenda The agenda was reviewed and there were no changes.
166 9. Adjourn
167 The meeting was adjourned at 9:00 p.m.
168
169 These minutes were considered, corrected and approved at the regular Council meeting held on
170 July 13 2020.
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