HomeMy WebLinkAbout06-07-2021 Council Minutes (2)CITY COUNCIL WORK SESSION
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DATE
TIME STARTED
TIME ENDED
MEMBERS PRESENT
MEMBERS ABSENT
APPROVED
CTTY OF LINO LAKES
MINUTES
June 7, 2021
5:00 P.M.
8:20 p.m.
Council Member Stoesz, Lyden, Rubland,
Cavegn and Mayor Rafferty
None
Staff members present: Cij� Administrator Sarah Cotton; Finance Director Hannah
Lynch; Director of Public Services Rick DeGardner; Director of Public Safety John
Swenson; Community Development Director Michael Grochala; City Clerk Julie Bartell
I. (5:00 pm) Final Report on Recreation and Aquatic Center Feasibility Study
by Isaac Sports Group — Community Development Director Grochala introduced the
subject matter including the background on the former YCMA facility (see written staff
report). He introduced consultants Stu Isaac and Duane Proell, who gave a presentation
using PowerPoint (on file) that included information on the following:
The process and methodology used for the study;
ft Goals, opportunities and vision for the community rec center;
• Programing: immediate and long term;
Programming, more specifically:
- for older and active adults;
- fitness (including drawing in outside providers).-
- aquatics;
- therapy, rehab and special needs programming;
- learn to swim and water safety;
Programming, rec center schedule model;
Potential Program Outsourcing, finding the right program partners criteria;
• Possible Opportunities for Outsourced Programming:
- swim lesson
- fitness program provider;
Membership Model (three different scenarios of YMCA fees); found that
60% of Y rates was the sweet spot;
Recommended Membership and User Fees (table);
• Operating and Financial Goals;
• Management Models (City managed, total outsourced; hybrid options);
Re -Opening and Start Up Costs (city management option);
Financial Operating Analysis (city management and hybrid option);
• Year 3: City managed vs. hybrid model (cost estimate table); (also showed
expense and revenue estimates for year 1 and year 2)
Main Sources of Revenue;
Main Sources of Costs;
• Long Term Accrued Deficit;
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• Capital Outlay;
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• Financial Impact of Hybrid Model;
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• Future and Long term Opportunities;
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K Goals (future sports center, outdoor activity center, community function
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space;
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• Long term Expansion Costs;
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• Workback schedule from Re -Opening (four months);
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° Factors Affecting Timeline;
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• Next steps.
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Mayor Rafferty asked if there was any information obtained on the concept of selling the
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building outright. Mr. Isaac said they did not look at that option; they feel there is so
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much need and also they work in the area of real estate.
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Mayor Rafferty noted that partnerships have been noted; was their consideration of
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partnering with other communities in the area. Mr. Isaac noted that the report includes
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notes on discounted membership for any group that would want to play a role but they did
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not specifically identify other communities.
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65 Councilmember Cavegn, looking at the cumulative deficit model, noted that there is a
66 rise. Mr. Isaac explained that how that accrues. Councilmember Cavegn, asked, without
67 a partnership, would that be City subsidized? Mr. Isaac said their estimates include
68 things that are options such as salaries and adding courts. Councilmember Cavegn asked
69 if the expansion costs are all additional costs because there is no revenue being banked;
70 Mr. Isaac concurred but added that once things were opened he expects additional related
71 revenue.
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73 Councilmember Lyden said he is looking at the hybrid model, with commitment to long
74 term growth. He likes the fee model. He noted that current membership is anticipated
75 and he wonders where that comes from and should they be offered an incentive. Also
76 Councilmember Lyden mentioned how important it is to hire the correct staff. Mr.
77 Isaac responded that he is aware of a fitness provider that has indicated they would come
78 right into the facility with their membership of about 60% of the membership goal.
79 Administrator Cotton provided information on the current debt service for the YMCA
80 facility and noted that could be available for operating deficit when debt service was
81 complete.
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83 Councilmember Lyden asked how hard is it to find the right person to lead the operation.
84 Mr. Isaac said he has been involved in filling those positions and while it's hard, it's
85 important to understand what you need; their proposed budget includes a salary that could
86 attract and maintain a top person.
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88 Councilmember Ruhland asked about the FTE's needed for the hybrid (8.5); Mr. Isaac
89 suggested that would be anticipated needs for the first four years and he explained the
90 needs. Councilmember Ruhland asked if the consultants see value in planning for virtual
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91 programming and Mr. Isaac said that is anticipated and has been considered in areas of
92 the budget (equipment). Couneilmember Ruhland said he is leaning toward the hybrid
93 model; he asked for the consultants' professional recommendation on the best option.
94 Mr. Proell said the hybrid program makes sense to him; his experience tells him that the
95 city managed program would be a longer and harder road; he added that there are very
96 viable partnerships available to the City.
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98 Couneilmember Stoesz asked about the child watch program; how will that be priced and
99 how important is it. Mr. Isaac said it is a service provided with revenue not covering
100 costs; most facilities provide it as a service for their members. Couneilmember Stoesz
101 asked if the City's insurance through the LMC would cover a facility; Mr. Isaac said it
102 would normally be covered through the City's regular insurance channels.
703
104 Community Development Director Grochala remarked that this project has turned over all
i 05 leafs — the study has been well developed and the options presented are viable. He noted
106 that the consultant will be present for the council meeting (June 28`1'). The report
107 includes a lot of positives, the facility is a good one and there are opportunities to make it
108 a continuing asset to the community.
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i 10 Finance Director Lynch concurred with the completeness of the report and noted that the
III financial information is appropriate to the question.
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113 Public Services Director DeGardner said directors have spent a lot of time looking at
114 alternatives and have looked at how a facility could be merged into the City structure, all
115 based on how the council would like to proceed.
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117 The mayor offered thanks to Mr. Isaac and Mr. Proell for the report. If the council has
118 additional questions, he suggests they pose them to staff previous to further formal review
119 on June 28`h.
120 The meeting was recessed at 6:50 p.m. to allow for a scheduled special council meeting.
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122 2. Review 2020 Annual Audit Report — Finance Director Lynch explained that the
123 City's 2020 Annual Financial Report has been prepared by Redpath and Company and
124 their representative, Andy Hering, was present to overview the findings and answer
125 council questions. The council will be asked to accept the report at the June 14`h Cit
126 Council meeting.
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128 Andy Hering, Redpath and Company, the City's auditing firm, reviewed a PowerPoint
129 presentation including information on the following:
130 • Overview of report;
131 a Results overview;
132 • Audit process (schedule);
133 • What do the auditors look for;
134 X Where they look for data (journals and disbursements);
135 0 Report on Minnesota Legal Compliance (where they look);
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136 a Report on Internal Controls Over Financial Reporting;
] 37 • Report on Compliance for Each Major Program and on Intemal Control over
138 Compliance;
139 E The Single Audit (done when/because of federal funds received);
140 • American Rescue Plan Act —eligible uses;
t41 • Communication to Those Charged with Governance (ever}rthing went very well);
142 • Summary of Financial Activity (table);
143 a General Fund Summary and Five Year History; Monthly Cash Balances;
144 . Enterprise Funds, Cash Flow.
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t 46 Mr. Hering summarized the report by noting that everything went very well and there are
147 no findings to report.
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149 Councilmember Lyden noted the receivables from the Legacy at Woods Edge and the
150 comment that staff believes that is collectible; can staff provide an update? Also how
151 can the City increase its bond rating? Administrator Cotton recalled the question of bond
152 rating was asked of Baker Tiller consultant Terri Heaton and she will be responding on
153 that; it will involve more long range planning and in general the City needs to grow and
154 develop more. The Legacy debt is internal and will work itself out over time.
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156 Councilmember Ruhland thanked staff for a great job and the auditor for their work.
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] 58 3. Electronic Municipal Payments — Finance Director Lynch reviewed her written
t59 staff report. She explained that the option for these municipal payments is now available
60 through the Springbrook system that the City uses. The program doesn't have a cost but
161 credit card fees would apply for that type of payment. Staff is recommending the City
t 62 cover the fee and with the idea to keep an eye on those charges. The amount of the fee is
163 noted in the staff report.
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65 Councilmember Ruhland asked if there will he an opportunity to receive a check card
166 rather than a credit card so there would be a lower fee; Finance Director Lynch will look
167 into that matter.
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169 Councilmember Stoesz noted that he works for a bank. He has had training and he
170 knows there is sensitivity about storing credit card information; Ms. Lynch said the City
171 will not be storing card data.
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173 Councilmember Lyden asked if people can still pay with cash or check and Ms. Lynch
174 said yes those payments will be accepted.
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176 The council concurred that staff should move ahead.
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178 4. Liquor License Fees — City Clerk Bartell reviewed the written report. Staff is in
179 the process of receiving renewal applications for City issued liquor licenses and has been
180 looking at measures to provide relief to these businesses that have been greatly impacted
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by the pandemic regulations. The waiver of license fees for the coming license period is
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proposed.
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The council concurred that they would support an action waiving the fees.
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5. Water Treatment Plant Update — Community Development Director Grochala
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reported. It's been almost a year since the council received the result of a feasibility
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study on this matter. Council wanted to look at rates and a pilot study of treatment
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results. Staff is asking if they should proceed with that pilot study (over four months).
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The cost of doing a study was noted and a possible funding source would be Area and
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Unit Fund,
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Councilmember Cavegn asked if the test would include other things besides manganese;
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Director Grochala said it would include identified potential issue chemicals.
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Councilmember Ruhland asked if all wells would be included in a pilot test and Mr.
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Grochala said it would be done only for the well seen as the worst. Councilmember
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Ruhland asked how long the reports would be viable and Mr. Grochala estimated it would
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be good for a couple years but he will confirm that estimate.
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Councilmember Stoesz asked if there will be a tour opportunity for the trailer. Mr.
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Grochala suggested that the trailer wouldn't be a good example of a water treatment
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facility and if the City chores a treatment facility it will be individually designed. Mayor
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Rafferty said the council can tour another water treatment facility if they wish.
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Councilmember Ruhland noted that he wants to make sure the schedule for developing a
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water treatment facility (if that were the council's decision) wouldn't make a pilot study
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inaccurate.
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The council concurred that staff should get the answers and then add the matter to the
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council's action agenda. The council concurred that it can be put on the next agenda.
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6. Environmental Board Openings — Administrator Cotton reviewed the written
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staff report. There are currently two openings (one in July) on the Environmental Board,
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both due to resignations. There are three applicants from the last open appointments
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period. Staff would like council direction on proceeding with filling the vacancies.
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Mayor Rafferty suggested that the process be opened again. The three applicants will be
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notified. The City will accept applications through the end of July.
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7. Council Compensation — Administrator Cotton reviewed the written staff report.
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This would be an appropriate time to consider council compensation, to be effective
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2022. She has recommended an increase based on the wage adjustments provided to
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staff. Staff is recommending that the matter be placed on the June 14'h council agenda.
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CITY COUNCIL WORK SESSION
APPROVED
The council concurred.
8. COUne11 Updates on Boards/Commissions:
North Metro TV — Councilmember Stoesz no federal rulings that could impact their
budget.
Not on Printed Agenda:
Mayor Rafferty noted that the council will be moving the work session meetings back to
the community room beginning in July. There was no objection.
Blue Heron Days— Councilmember Stoesz noted that the counTy has approved the road
closure. The event planning group will be submitting a special event permit application
to the City. He is gaining information by watching how events are proceeding in other
cities. He will be looking for some direction from the council on fees (i.e. parade
entrants).
9. Adjourn
The meeting was adjourned at 8:20 p.m.
These minutes were considered, corrected and approved at the regular Council meeting held on
June 28, 2021,
n e Bartell, City Jerk
ob Rafferty, Mayor