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HomeMy WebLinkAbout07-08-2010 Minutes (2)Charter Commission July 8, 2010 Page 1 FINAL CITY OF LINO LAKES SPECIAL JOINT MEETING CHARTER COMMISSION & CITY COUNCIL DATE TIME STARTED TIME ENDED COMMISSION MEMBERS PRESENT MEMBERS UNEXCUSED CITY COUNCILMEMBERS PRESENT: STAFF MEMBERS PRESENT OTHERS PRESENT: July 8, 2010 6:38 P.M. 9:58 P.M. Dahl, Lyden, Gunderson, Carlson, Drennen, Minar, Penn, Storberg, Trehus, Turcotte, Williams MEMBERS EXCUSED Aldentaler, Bretoi, Sutherland, Zastrow None Mayor Reinert, Gallup, O'Donnell, Rafferty, Roeser Acting City Administrator Dan Tesch, Community Development Director Michael Grochala Bob Bennett, Nicholas Backus (Quad Press Newspaper) CALL TO ORDER AND ROLL CALL Chair Dahl called to order the joint meeting of the Lino Lakes Charter Commission and City Council at 6:38pm on July 8, 2010. Roll Call was taken and the Pledge of Allegiance was recited. OPEN MIKE No one spoke during the period for open mike. Chair Dahl noted that she would like the meeting to be respectful. OLD BUSINESS A. Charter Commission Budget Chair Dahl distributed copies of the exact language of the Minnesota State Statute regulating Charter Commission budgets, stating that City Councils may authorize additional funds above the required $1,500 per year. 1 Charter Commission July 8, 2010 Page 2 46 Mayor Reinert summarized the last conversations between the Commission and Council about 47 establishing a procedure to request and authorize additional funds if needed. 48 49 Chair Dahl stated that the Commission's attorney has estimated that to work on three 50 amendments would be approximately $5,000 and that was presented to the City Council, before 51 the two newer Council members were on the Council. 52 53 Commissioner Lyden noted the historical budget information before the group that indicates the 54 regular need for more than $1,500 per year. He suggests that $6,000 to $8,000 per year would 55 allow the commission to function as it should. He also related the additional requested funds 56 compared to the entirety of the City budget. Commissioner Lyden also noted that all expenses 57 incurred by the Commission are currently subject to Council approval. 58 59 Council member Roeser suggested the Commission be consistent with City budget procedures 60 and present their budget in a line -item fashion. 61 62 Council member Rafferty stated that the council must be stewards of the city budget and be 63 especially in the current economic situation. He states that the City Council is 5% over budget, 64 the Police department is over budget by 2%, and Charter Commission is over budget by 27% . 65 He concurs with Council member Roeser would like to see line -item budget to understand how 66 money is being spent. 67 68 Commissioner Gunderson clarifies the 27% over budget referenced by Council member Rafferty 69 for the Charter Commission is from 2009 and not the current year's budget. Commissioner 70 Gunderson states that in 2009 the Charter Commission was given $2,200 in their budget and had 71 expenses of $2,800 due to the audit of the Commission that was directed by the City Council. 72 73 Commissioner Drennen stated he finds it entirely reasonable to ask the Commission to prepare a 74 line -item budget and a procedure for budget requests. 75 76 Commissioner Carlson stated that the Council spent a substantial amount toward the audit of the 77 Commission and there was a need for the Commission to request additional monies for legal 78 advice regarding the audit. Any procedures for funding would need to include provisions for 79 responses in those circumstances. 80 81 Commissioner Trehus commented that the audit was conducted by an attorney, not an auditor. 82 The attorney hired by the City had previous involvement with a controversial charter issue in the 83 City of Eagan. Therefore he questions the motive of the audit. Regarding the budget, historically 84 the Commission has received in the area of $5,000 per year regularly and many times money was 85 returned to the general fund. The Commission provides a vital check and balance approach to 86 city government, is a separate entity of city government and therefore, should receive adequate 87 city funding. 88 89 Commissioner Storberg asks if it is possible to establish an annual budget figure and rollover 90 unused funds to be better prepared for less and more active years. She further stated that over 30 2 Charter Commission July 8, 2010 Page 3 91 years, she has witnessed the volunteers of the Commission have worked hard even though they 92 are not paid. 93 94 Council member O'Donnell stated that the Council is about to enter the budget process for 2011 95 and would welcome a budget proposal using line -item procedure from the Charter Commission. 96 97 Chair Dahl noted that there is currently a "lock" on the 2010 charter budget so that they are not 98 allowed to expend any funds. Neither council members nor the acting city administrator were 99 aware of the situation. Chair Dahl will review the minutes to confirm. 100 101 Commissioner Drennen noted there are some old concerns that have come up and that's to be 102 expected but he for one is interested in keeping the conversation going and continuing to have 103 joint meetings. 104 105 Mayor Reinert states the Council would welcome another meeting with the Commission. 106 107 Council member Roeser states that as part of the process for establishing a procedure for budget 108 requests, a "cause and effect" stipulation also be part of the procedure to handle situations where 109 th Commission incorrectly spends dollars, what a penalty would be and that it should come from 110 the Commission rather than the Council. 111 112 Commissioner Trehus asked for a timeline to submit a budget proposal to the Council. Council 113 member O'Donnell stated the deadline would be August 1st or very early August. 114 115 B. Unpaid bill from Attorney Marty 116 Commissioner Gunderson explained the current status of the commission's account with their 117 attorney, Karen Marty, is that most of the outstanding balance is owed in conjunction with the 118 commission's response to the city's audit and that when the commission was told to spend no 119 more money (August 2009) there were no additional expenses incurred. The charges on the bill 120 were at one time separated according to what was for framing and amending and that portion was 121 paid at the end of 2009 . The remaining balance is $1,463.05. The commission is looking for a 122 resolution on this bill; the attorney did put in the work and she would have the option of coming 123 to the city for payment. She believes that the statute allows the city to pay if the council deems it 124 necessary. 125 126 Mayor Reinert recalled that the council has paid some of the Marty bills and he was supportive of 127 paying the bills so that the council and the commission could move to working together. The city 128 attorney has since opined, however, that it is illegal for the council to pay this bill. 129 130 Commissioner Carlson suggested that it would be helpful to see some legal precedence on that 131 opinion. 132 133 Commissioner Gunderson asked the Mayor if it is his opinion that if in the future, the City is 134 petitioned to have the Commission audited again, that the Commission would be prohibit from 3 Charter Commission July 8, 2010 Page 4 135 having legal representation or seek legal advice. The Mayor stated he did not know the answer to 136 that situation. 137 138 Mayor Reinert agreed to have the attorney look at the question again and provide some legal 139 precedent. 140 141 Chair Dahl pointed out that the commission will have difficulty moving ahead until this bill is 142 paid and would appreciate a legal review and another opinion. 143 144 C. Code of Conduct/Conflict of Interest 145 Commissioner Gunderson explained that the Commission at one time decided to review the code 146 of conduct language in the city code especially in light of their desire to have a code for the 147 Commission. In reviewing the language, the Commission felt it needed some revision. Using 148 examples of codes of conduct from other cities in Minnesota, the Commission began to draft 149 revised language. Before completing a draft, the Commission seeks to get input from the 150 Council. 151 152 Mayor Reinert noted that the passing of laws, policies, and ordinances are generally done to solve 153 a problem or to pave the way to improvement. There is a code of conduct in the City's code and 154 as well a council produced code from 2006 and he doesn't see an issue with what's in place or 155 issues in the area of conduct. 156 157 Commissioner Dahl explained that there didn't seem to be any language on conflict of interest 158 and as well they have found in doing research that some codes seem to cover better the Boards 159 and Commissions. 160 161 Commissioner Drennen noted that the language of the current code of conduct does not include 162 the words "conflict of interest" or deal with gifts and favors, therefore stronger language was 163 sought. 164 165 Mayor Reinert suggested that if the language isn't complete, then perhaps an update is possible. 166 167 Council Member O'Donnell suggested that bringing the codes of conduct together is a fine idea 168 but in the interest of maintaining the original intent of the code that the council adopted which 169 was to focus on how the council interacts within its body and with staff and he wouldn't want to 170 see that intent lost with any revisions. 171 172 Commissioner Lyden remarked that a change in the enforcement process may be warranted; the 173 body policing itself doesn't always work well. 174 175 D. Tax Cap Amendment 176 Commissioner Trehus noted the information provided in the packet that indicates that the 177 increases in the city levy have outgrown the population increases. Lino Lakes is a little different 178 in that there is no budgeting for road improvements, therefore he has added an estimated cost for 179 those improvements into his figures. A number of cities in the region have enacted measures to 4 • Charter Commission July 8, 2010 Page 5 180 cap tax increases. Commissioner Trehus feels a cap is strongly needed with the pending end of 181 the state levy limits at the end of 2011. When looking at the adopted levy for 2008-2010, 182 Commissioner Trehus complimented last year's council for decreasing the 2010 levy. He also 183 stated that the Commission brought up this possible amendment for discussion at the previous 184 joint meeting and the Commission is looking to continue that discussion. 185 186 Council member Rafferty distributed a recent Letter to the Editor written by Commissioner 187 Trehus on the subject of the tax levy. He asked to use the letter as grounds for gaining more 188 information and he has noted that on the back of the handout. He has spoken with staff for 189 additional information on some of the elements — population, city budget ten years back, 190 comparison of dollars and cents over the years, and particular impacts on the budget over those 191 years. It's important to take a historical view of the information with clarity on what the budget 192 has had to support over the period in question. 193 194 Mayor Reinert noted that tax caps can look like a great idea on the surface but can sometimes end 195 up choking a city. For instance a cap could prevent an investment in maintaining roads that pays 196 off in the long run. He identifies himself as a fiscal conservative and understands a tax cap can 197 look like a great idea but the whole picture is important. The electorate can remove officials who 198 are not taxing appropriately. He doesn't see a problem to solve with tax cap right now. 199 200 Commissioner Minar noted that he has seen city employee salary information that indicates there 201 is a problem; the salaries are too high and there are people who would do the jobs for less. 202 Public employees should not be making more than their private sector counterparts. Regarding 203 road maintenance, it can be funded properly within a reasonably reduced budget. 204 205 Council member O'Donnell suggested that staff could be hired at a lower salary but the full 206 picture includes consideration of what staff brings to the city, i.e. the city's high bond rating 207 saves the city lots of money. Regarding a tax levy cap amendment, he has some concerns about 208 some entities could be more concerned about spending an alloted amount rather than spending on 209 needs. That being said, he does not have a problem seeing it considered if that is a goal of the 210 commission and it is best for the citizens. 211 212 Commissioner Gunderson suggested that the commission's goal isn't necessarily to go out with a 213 referendum on the question. The goal is to make sure there is a tax levy cap when the state 214 statute requirement expires to protect the taxpayers of the city. 215 216 There was discussion between the council and commissioners about the city's obligations, debt 217 service and tax -increment financing to the Legacy at Woods Edge area and the possibility of an 218 impact on city taxes. 219 220 A five minute recess is taken and the meeting is reconvened at 8:55pm. 221 222 Chair Dahl thanked the council for input on this item indicated that the commission will keep the 223 matter (tax cap) on their agenda. 224 5 Charter Commission July 8, 2010 Page 6 225 226 227 228 NEW BUSINESS 229 230 A. Road Improvements — How do we get there? (Council initiated agenda item) 231 1 a. Joint Subcommittee (Council initiated agenda item) 232 233 Mayor Reinert asked if the commission feels that there is a problem with current process for 234 reconstructing roads. He noted that there has been one road reconstructed in the last twenty years 235 but information would seem to indicate that while it's not an emergency, more work is needed. 236 There have been failed referendums. He is interested in hearing the commission's viewpoint and 237 any suggestions. 238 239 Commissioner Turcotte noted that he has reviewed the city's Pavement Management Plan (PMP) 240 and would like an explanation of the city's maintenance program. Mayor Reinert commented that 241 the PMP has only been fully funded in the past 5 years. 242 243 Community Development Director Grochala explained the city's current program of sealcoating 244 and overlay, noting that there are streets in the city that are past the point where either of those 245 processes would be helpful. 246 247 Council Member O'Donnell noted that it is good that the city has a pavement management plan 248 but bad that it hasn't been fully funded in the past, although full funding is in place again 249 recently. In regard to the work that was done in the past by the citizens task force and the Charter 250 Commission to address the matter of reconstructing the city's roads, he'd like to leverage that 251 work because it was beginning to bring the council and the commission together toward a 252 solution. Can that language be explored again? 253 254 Commissioner Drennen noted that he feels the crux of the issue is how does the city get to the 255 issue of citizens paying for streets that don't benefit them because that seems like taxation 256 without representation. 257 258 Commissioner Trehus added that it isn't accurate to always refer to the projects as "road 259 reconstruction" because in many cases the proposed projects include other improvements. He is 260 also concerned that the lack of sewer and water utilities can affect a roadway's rating in the 261 pavement management plan. 262 263 Mayor Reinert asked for input on the idea of forming a subcommittee to work on a proposal, 264 including using the work that has already been done on the subject. 265 266 Commissioner Lyden suggested that the solution could be to fund necessary road reconstruction 267 by making city budget cuts. 268 6 Charter Commission July 8, 2010 Page 7 269 Mayor Reinert suggested that he is confident there is a better way to do things and he thinks a 270 subcommittee is a good way to look for that information. 271 272 Council Member Roeser noted that he is very committed to reducing the cost of government and 273 to keeping taxes down. There needs to be a way to handle road work and the concept of bringing 274 a couple of people from the Commission and Council together, using the information already on 275 the table, seems appropriate to him. 276 277 Commissioner Gunderson asked Mr. Grochala if the passage of a referendum would be needed to 278 install stoplights at Lake Drive and Main Street. Mr. Grochala said technically, yes. Mr. 279 Grochala went on to explain different scenarios of funding road reconstruction or improvement. 280 281 Commissioner Gunderson pointed out that in discussing the history of the matter it should be 282 noted that the only road project to go to referendum, West Shadow Lake Road, is somewhat 283 unique because that road is not a thoroughfare and project entails the addition of utilities such as 284 water and sewer. Therefore, is it not possible that the intent of the chapter of the Charter that 285 requires a referendum for road reconstruction is working because it has only been tested on one 286 specific road that is not equal to a majority of roads in the city. The Mayor suggested that most 287 of the roads in town fit that description however. 288 289 Council member Roeser further suggests that city staff be involved with any possible committee. 290 291 Commissioner Carlson remarked the Commission already gave the council a good proposal and 292 the Council rejected it. Then ballot question to take Chapter 8 out of the Charter was rejected by 293 the citizens. That puts all involved in a bind of how to go forward. 294 295 Commissioner Drennen said he feels it is appropriate to look forward on the matter and he hopes 296 that the commission will be discussing if and who for a subcommittee at their regular meeting. 297 298 MayorReinert suggests that if a committee is formed it should have 2 Council members, to avoid 299 the definition of a council meeting, and 4 Charter Commissioners. 300 301 Chair Dahl remarked that the discussion shouldn't be about whether or not the charter works 302 because it does. She doesn't support a subcommittee at this time because some charter members 303 are absent, the concept wasn't commission initiated, and the idea needs to be fully discussed. 304 The charter commission is doing other good work for the citizens in the meantime. 305 306 Commissioner Lyden stated that he feels the Commission cannot go forward with any work with 307 a past due bill still outstanding as well as not having a commitment on a budget going forward. 308 309 Commissioner Storberg suggested the Council review the Task Force amendment and the 310 Charter Commission's amendment and then make a recommendation of what the Council feels is 311 appropriate. 312 7 Charter Commission July 8, 2010 Page 8 313 The Mayor concluded that it doesn't appear as if the commission feels there is a problem to be 314 solved so that answers his initial question. 315 316 Commissioner Drennen suggested that he feels that the commission's message is that they are 317 open to the idea of a subcommittee and would like to discuss it further. 318 319 Commissioner Minar thanked the council members and the Mayor for attending the meeting. 320 321 ADJOURN 322 MOTION by Commissioner Minar, seconded by Commissioner Drennen, to adjourn at 9:58 p.m. 323 Motion passes unanimously. 324 325 326 Respectfully Submitted, 327 328 Kelly Gunderson 329 Secretary 8