HomeMy WebLinkAbout07-05-2017 Council Work Session MinutesCITY COUNCIL WORK SESSION
APPROVED
July 5, 2017
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE July 5, 2017
5 TIME STARTED : 6:00 p.m.
6 TIME ENDED : 9*30 p.m.
7 MEMBERS PRESENT : Council Member Rafferty, Kusterman,
8 Maher, Manthey and Mayor Reinert
9 MEMBERS ABSENT :None
10
11 Staff members present: City Administrator Jeff Karlson; Public Safety Director John
12 Swenson; Community Development Director Grochala; Finance Director Sarah Cotton;
13 Public Services Director DeGardner; City Planner Katie Larsen; City Clerk Julie Bartell
14 1) Council Chambers Audio/Visual Upgrades —Administrator Karlson recalled the
15 work underway to plan and implement an upgrade to the council chambers audio/visual
16 system. He anticipates at least two bids on the specifications authorized by the council.
17 He introduced Matt Waldron from North Metro Telecommunications. Mr. Karlson
18 added an explanation of new information on a proposal by Z Systems for a design build
19 option. He reviewed the project proposed and information included in his report. The
20 goal is to try and keep the project under $150,000 and that looks plausible.
21
22 Matt Waldron provided information based on his research and expertise. He highlighted
23 Ross Lightning Control System. The system is based on a single computer without the
24 many components. He reviewed a written summary of the information he has provided.
25
26 Council Member Kusterman asked what has led to the design recommendations and Mr.
27 Waldron indicated that much of the layout will remain as is but the control room design
28 will be the major change. Council Member Kusterman said he's interested in
29 understanding what the city is getting for "redesign" work. Mr. Waldron explained the
30 basic elements of the redesign, including new and one additional camera, cables, a basic
31 gutting of the control room and installation new equipment, and an improved audio
32 system.
33
34 Administrator Karlson remarked that Z Systems, with their proposal to design build and
35 avoid a bidding situation, is working aggressively to get the city's business and he's
36 pleased with the cost proposed. He added that the work will pretty much be exclusive to
37 audio/visual. There has been interest in moving the podium to the side to address both
38 the council and audience however that would be a difficult change that is probably cost
39 prohibitive.
40
41 Mayor Reinert remarked that he's long been concerned about the archaic look of the city
42 cable channel and he wonders about the progress of that improvement. Mr. Waldron
43 explained the technical side of upgrades at North Metro that will all for full HD
44 broadcast. Administrator Karlson explained that City staff is working with the North
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CITY COUNCIL WORK SESSION July 5, 2017
45 Metro I v s new producer on updated programming for the channel as well. Mayor
46 Reinert suggested that there needs to be a regular review of that channel by staff to ensure
47 it remains pertinent. Mr. Waldron suggested that staff could have regular meetings with
48 the new producer.
49
50 Council Member Rafferty discussed his concern about a very small bid pool for the
51 project; he'd like to see the quality that comes from competition and options. Mr.
52 Waldron remarked that the availability of companies to do this type of work and do it
53 well is limited and that is represented in the number of bids.
54
55 Mayor Reinert asked if the city will be obligated to accept the low bid. Administrator
56 Karlson said not if the city doesn't feel it is the right bid. Mayor Reinert suggested that
57 the council will see the results of the bid process in a couple of months. Council
58 Member Manthey suggested that the city must be fair from the onset about what is
59 requested so that bidding is a fair process.
60
61 Council Member Rafferty asked what is proposed for the little televisions currently on the
62 dais and Mr. Karlson explained that the units would be updated and still within the well.
63
64 Staff will proceed to go out for bids on the equipment and installation for the project.
65 2) Investment Portfolio Review —Finance Director Cotton introduced Lynn Cornwell
66 with Wells Fargo Securities. Ms. Cotton recalled that the council asked for more review
67 of city investments as part of the recent audit reports.
68
69 Ms. Cornwell provided information on her bio. She specializes in working with city
70 governments and school districts. They worked with the city's previous finance officer
71 Al Rolek previous to Sarah Cotton. She sees pretty much the same objectives as she
72 works with local governments; safety of investments is generally the number one priority
73 (noting statutory limitations). Ms. Cotton then explained her cash flow tracking process,
74 something she set up by the month which provides information can be used to determine
75 what is available for investment.
76
77 Council Member Kusterman asked if there is a difference between the designated and
78 restricted funds. He has reviewed the law thoroughly and he doesn't see anything that
79 would preclude use of funds in a non -investment manner such as loaning funds to
80 ourselves. Ms. Cotton explained that inter -fund loans are allowed but there must be a
81 policy approved and attached to any transaction of that type. Ms. Cornwell noted that
82 she doesn't know the details but knows that the City of Bloomington bought their own
83 bonds. Ms. Cornwell also briefly explained a new concept of direct lending from the
84 bank, avoiding the financial adviser and the rating elements; it's something much more
85 common in other states. The point being that there are a lot of options and the city should
86 explore them all.
87
88 Mayor Reinert mentioned investment policy and liquidity. Ms. Cornwell suggested that
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89 the city's investment policy is old and should be updated. On the matter of liquidity, she
90 sees it's different with each city but the liquidity has become more expensive to the city
91 with interest rates rising.
92
93 Mayor Reinert asked out yield; he understands the safety element but wonders if there
94 can be a policy of the council requiring a higher yield (with safety in mind, but not
)5 costing the city money). Ms. Cornwell said the city cannot set such a goal; it is not
96 feasible.
97
98 Ms. Cornwell reviewed the written report, including information on:
99 - the Trump bump is leveling off and is now resulting in a drop in the market;
100 - current market yields (with statute in mind) that dictates what bonds can be bought;
101 specifically noted was commercial paper not being viable;
102 - transaction fees were reviewed for the different types of offerings;
103 - commissions (can be double fees without direct bank access);
104 - the Wells Fargo group provides extra services and analytical services;
105 - portfolio history and book yield was noted (the city is a third above pier cities);
106 - duration and convexity.
107
108 Mayor Reinert asked what the city can do for a higher yield. Ms. Cornwall remarked that
109 a two percent goal is unrealistic under current law and Ms. Cotton suggested a special
110 bench marking exercise may be more fitting.
111
112 Mayor Reinert asked who is making investment decisions for the city and Director Cotton
113 said she makes the decisions using the city's existing policy and investments.
114
115 Mayor Reinert remarked that this is the best and most comprehensive information the
116 council has received on this topic and he is thankful.
117
118 The council recessed briefly to step outside city hall to view fire department equipment.
119
120 3) Sale of Fire Apparatus - Public Safety Director Swenson showed photos indicating
121 how the new equipment will better reach residential properties.
122
123 Director Swenson noted that, with the new equipment, the city has a decision about sale
124 of equipment. He is recommending retention of Aerial 11, so that both sides of the city
125 will have aerial equipment, provide redundancy with that service, and in consideration of
126 repairs that the city has invested in the equipment. He recommends sale of the two 1992
127 engine vehicles through a company that specializes in trading fire apparatus. They
128 estimate a sale price of $40,000 to $50,000 with a commission expected to the company
129 if they locate the buyer. The mayor reviewed what the city paid for those trucks and the
130 possible gain/loss to the city. Director Swenson added that the longer the city hangs onto
131 the equipment, the less it is worth due to the certification requirement. Staff is asking if
132 the council is comfortable with the proposal to work with the trading company.
133
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134 Council Member Rafferty recalled the department's early recommendation on the
135 purchase from Woodbury and asked if those trucks were intended for training from the
136 onset? Director Swenson recalled the development of the need for training. Mayor
137 Reinert said he's comfortable with the fact that the equipment has served a purpose and
138 may provide revenue to the city.
139
140 Director Swenson said he would proceed with working with the Brinlee Mountain
141 Company on the marketing of the equipment. Mayor Reinert directed staff to try and
142 make as much off the trucks as possible. Council Member Manthey asked if there is
143 time to work the market and Director Swenson said it's tied to the timing of the
144 requirement for recertification.
145
146 Director Swenson also received council concurrence on donating some hard suction host
147 that is no longer useful to the city. It was agreed that the equipment would be donated to
148 the Centennial Fire District. He will bring the matter to the council for official
149 authorization.
150 4) Public Works Facility Audit Payment and Proposal for Additional Architectural
151 Services - Public Services Director DeGardner reviewed his written staff report,
152 including the history of this project to date.
153
154 Mayor Reinert remarked that the council wants to receive the information that they paid
155 for. The work received didn't include what was specifically requested. Now the
156 council is receiving this (representing the work originally requested) with a request to be
157 paid for the "additional" work. He suggests that the council work session recording of
158 previous council consideration will tell the tale. He clarified that he has stated in a
159 previous meeting that he isn't interested in new buildings. He sees the goal as getting the
160 citys equipment out of the weather. He didn't see anything representing that option
161 brought back.
162
163 Council Member Manthey said he recalls the three options brought forward and actually
164 that was what he expected. He would like to see additional information but he doesn't
165 necessarily recall that request. He recalls discussion about what the city will need
166 looking ahead to the future.
167
168 Mayor Reinert suggested that providing only three $12 million options isn't what he
169 wanted and isn't appropriate. This is the difference between a want and a need — the
170 need being to get equipment out of the weather and repair the public works building.
171
172 Council Member Kustennan suggested that he got what he expected, not to say that he's
173 interested in spending that much money.
174
175 Mayor Reinert said he recalls specifically his request and he feels it was ignored. He
176 doesn't think that the bill should be paid until the job is finished.
177
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178 Council Member Maher suggested that the council voted and approved a resolution that
179 authorizes what came forward. Mayor Reinert suggested then that, to be clear, the
180 council will have to have every element of their discussion included in what they vote on
181 in the future.
182
183 Council Member Kusterman noted that the council's discussion included a request for an
184 itemization so they could look at what is really needed.
185
186 Director DeGardner remarked that he believes Mr. Hutson of CNH Architects thinks he
187 provided what he was asked to. Mr. DeGardner added that by keeping a shell and
188 attempting to retrofit the existing facility was probably not a level of improvement that
189 was considered. Mr. DeGardner said he can inform Mr. Hutson that the city doesn't
190 want to pay the remainder of the bill based on this discussion. Mayor Reinert added that
191 the job wasn't done as requested. He should finish the job with what he was paid or the
192 city can get someone else.
193
194 Council Member Maher said she hasn't listened to the tape to confirm what was said.
195
196 Council Member Kusterman suggested that the mayor seems to want the council to listen
197 to the tape to confirm the direction.
198
199 Council Member Rafferty recalled that he wasn't interested in spending a huge sum of
200 money at this point although he knows eventually facilities have to be upgraded. He does
201 see that Mr. Hutson tried to basically break things down in his report; perhaps Mr. Hutson
202 may have seen that it didn't make sense in his mind to not move to a new facility.
203 Council Member Rafferty said he doesn't see the need to withhold payment of the bill.
204
205 Mayor Reinert said he'd be willing to let go of the issue of payment of the bill but he
206 won't be willing to work with that company again. He'd like to see three contractors
207 brought in to view the current facility and hear what they could do to update that facility.
208
209 Council Member Manthey suggested that the process of discussion now is a good thing;
210 he always anticipated that there would be more council discussion to decide on the best
211 option for this city. He feels the council has to be very clear on the information they
212 want to receive. He thinks part of the discussion are things like bringing in water and
213 sewer and thinking ahead to needs in the future.
214
215 Council Member Rafferty suggested that even a contractor has to understand what is
216 being asked and that type of information isn't prepared.
217
218 Mayor Reinert asked, for the $12,000 that this company will be paid, will there be value
219 to the city in the future. Council Member Rafferty said he believes so.
220
221 The council concurred that the payment will be added to the next council agenda for their
222 consideration (as an item separate from the expenditure list). Staff was directed to look at
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CITY COUNCIL WORK SESSION July 5, 2017
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223 alternative options to get information from contractors or architects who specialist in
224 remodeling.
225 4.5) New Facility Rental Charges Impacting Recreation Department —Rick
226 DeGardner and Brian Hronski were present. Director DeGardner reviewed his written
227 report outlining charges for facility use that have been instituted by Centennial School
228 District (CSD). He reviewed the fall 2016 programs offered by the city and how the
229 revenue for those programs will not cover the costs of facility rental and result in a
230 significant deficit situation for the department. He reported that staff has attempted to
231 work this out with CSD but they are firm in their determination to charge the fees. The
232 department has worked hard to move what programs they can to city facilities or other
233 non -charge sites; some programs may have to be discontinued. He identifies two
234 scenarios within the staff report to deal with the situation — either challenge the
235 Recreation Supervisors to come up with solutions, or let certain programs go and hope
236 that the school district picks up on those activities and with that a loss of a recreation staff
237 position.
238
239 Mayor Reinert suggested that there's been a deterioration in the relationship between the
240 city and the school district in areas such as this and he fears it is mostly on their side. He
241 recalled ways that the city has worked with the district to assist. He suggested that there
242 are ways to charges back city costs to the district. He'd like to see if CSD would
243 reconsider.
244
245 Council Member Manthey asked if the school board members are aware and supportive
246 of this action. Mayor Reinert said he would write a letter to the superintendent and copy
247 the school board members; he'd rather unwind this before having to look at charging
248 back.
249
250 Director DeGardner remarked that the youth sports organizations have been given a
251 higher priority and as a result an exemption from the use fees. This would be a big
252 impact to the department and he can state that they have tried to work this out with his
253 contemporaries but that hasn't worked. He is really faced with a "what do we do for this
254 fall" and he is recommending the direction to staff to work on solutions.
255
256 Mayor Reinert asked that staff help him with a letter to the Superintendent, copied to the
257 school board members and perhaps a visit to the next school board meeting.
258
259 Council Member Kusterman said he is frustrated especially because he would like to see
260 more budgetary consideration to providing even more recreation opportunities. He
261 agrees with going to the school hierarchy to attempt to work this out.
262
263 The council directed staff to proceed with their recommended option one, including the
264 change to the $10,000 contribution.
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265 5) Peddler/Solicitor License Process — City Clerk Bartell reviewed the written report
266 outlining the licensing process and enforcement activities. Staff was directed to keep the
267 city's list of licensed peddlers/solicitors posted on the city website so that residents can
268 check at any time on who is holding a valid license.
269 6) Council Updates on Boards/Commissions, City Council —There were no updates.
270 7) Monthly Progress Report —Administrator Karlson reviewed the written report.
271 - Digital Scanning Project— Council directed staff to report back with an update
272 that includes the project scope, progress to date, and expectations for the future;
273 - Location of Veteran's Memorial — Council Member Rafferty is working with his
274 father on a vision, including looking at other memorials; community involvement and
275 comments period anticipated in the future;
276 - Channel 16 Upgrade — Labor Day switch over;
277 - Arlo Lane Stop Sign — Director Grochala reported that they have done additional
278 counts and with WSB will be reporting back, most likely in August;
279 - Culvert Maintenance ACD — Director Grochala reported that the culvert was
280 cleared and is functioning; environmental staff is checking the situation regularly.
281
282 Mayor Reinert noted that there have been some questions related to a tennis court on the
283 north end of the city. He understands there is discussion about the future of that facility.
284 Some not too recent survey results regarding tennis court use were noted. Director
285 DeGardner indicated that staff will be handling the removal and officials will make the
286 decision on replacement and/or location.
287 8) Review Regular Agenda —The agenda items were reviewed and there were no
288 changes to note.
289
290 The meeting was adjourned at 9:30 p.m.
291
292 These minutes were considered, corrected and approved at the regular Council meeting held on
293 July 24, 2017.
294
295
296
297
298 � Juliax�iie Bartell, City Clerk
299
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