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Home My WebLink About11-22-16 CCWP11,, CITY ( )1, KFE N/k) Our Mission is Provide Quality Public So -vices in a Fiscally Responsible Manner While Preserving the City's Open Space Charcrcter NOTICE. Of MEETING City Council Workshop 3800 Laverne Avenue North Tuesday, November 22, 2016 6:30 PM Call to Order 6:30 pm 11. Staffing- Sheriffs Deputy/Sergeant 6:30pm III. Discussion of 2017 Enterprise Budgets 6:50pm IV. Staffing -Public Works 7:10 pm V. Adjourn 7:30 pm apecial City Council Meetin2 3800 Laverne Ave N Tuesday, November 22, 2016 7:30 PM OR immediately foliowing he work session, whichever is later 1. Call to Order II. Closed Session pursuant to MN Stat. 13D.03, to consider strategies for labor negotiations, including negotiation strategies or development or discussion of labor -negotiation proposals III. Adjourn T1 It': CITY ()I: KE EI MO STAFF REPORT DATE: CONSENT ITEM #: AGENDA ITEM: Staffing -Sheriffs Deputy/Sergeant SUBMITTED BY: Kristina Handt, City Administrator November 22, 2016 BACKGROUND: As discussed in the development of the 2017 general fund budget, the Sheriff's department has asked the city to consider adding another deputy in Lake Ehno due to the changing nature of calls and the increase in call volume. Council asked for more information related to the need, Chief Deputy Dan Stan-y shared the following information with me. After three years of Part 1 and Part 11 crimes declining, which was a consistent trend in other areas around the state and country, we experienced an increase in 2015 for both of these areas. Part crimes include arson, aggravated assault, burglary, larceny/theft, rape, robbery and theft of motor vehicles. Part II crimes include DUI, disorderly conduct, narcotics, other assaults, sex offenses, liquor law violations, forgery, fraud/embezzlement, gambling, prostitution, runaway, sex offenses, stolen property vandalism and weapons violations. Part 1 crimes in Lake Ehno were: 2015 169 2014 147 2013 173 2012 186 Part 11 crimes in Lake Elmo were: 2015 464 2014 391 2013 443 2012 481 Service Related Totals were: 2015 5,237 2014 4,71.7 2013 4,778 2012 5,372 The sheriff's department, anticipates the trend of more Part 1 and Part II crimes to continue. In addition, they expect to see the quality of life concerns that are often reported by residents (noise complaints, animal complaints, parking issues and curfew violations) to increase as well as the population increases. PROPOSAL DETAILS/ANALYSIS: The Council should discuss if the number of contracted deputies should be increased in Lake Elmo in 2017. If so, further discussion may be had as to what level of expertise that new position has. One option would be to just hire another patrol deputy similar to what Lake Elmo utilizes now. Another option would be to add a sergeant. A sergeant would perform more supervisory duties (similar to a department head type position), be a resource for the city on public safety issues/concerns, and help build community relationships. While it wouldn't be expected that the sergeant would attend all Council meetings, s/he may when there is a topic of public safety being discussed. If the Council would like to add personnel, the City's contract with the Sheriffs Department would need to be amended via resolution at a future meeting. Staff is looking for direction at this meeting so we can prepare the resolution for a meeting in December, if needed. FISCAL IMPACT: The police budget for 2017 was increase in the preliminary levy to allow for additional personnel. Since estimates were between $120,000-140,000, staff asked for an increase of $130,000. CITY OF LAKE EL 0, M C ST F SERVICE STUDY F ATE SA ST R 1TARY SE ATE FU DS 2016 REPORT JU E 10, 2016 PREPARED BY: 444 Cf!:.4y 1500 Pot,t. MN V.)101 654292 44,10 tkdo.com. AD June 10.2010 KrisUnaHonch City Administrator Cathy Bendel Finance Director -1/-1c~'/^,s""/,5o./"/5uC� sw/n,v�MIN sam� snuszx4nn Lake Elmo City Hall 380OLaverne Ave N. Lake Elmo, KJN55O42 Re: Cost ofService Study for City Utility Funds TKOAPnojac( No. 16102.000 Dear Kristina and Cathy: TKDA is pleased to present the City of Lake Elmo with a cost of service study for the City's Utility Funds to be part of an overall Financial Management Plan for said funds. TKDA was hired to analyze and present a 10 year cost of service projection for the three Utility funds, The analysis and report includes a cost analysis ofpast costs and aprojection fnrench.addedsLrMing.andsomacapitalinvenimentsfor the existing system. Also included were a recommendation for a work order system, a change in some depreciation schedules, and a recommendation to use a higher projected rate of inflation for the utilities rather than 2%. We appreciate the opportunity to provide service to the City of Lake Elmo, Sincerely. BennkaBuUert Senior Water/Wastewater Engineer Lake Elmo Cost of Service Study TKDA was tasked with doing a cost of service study for the water, sanitary sewer, and storm sewer utilities- Thepnojected10yea,cogsofopemtionswoUbeosedtopnojeouWitymtesgoinQfonwardforthenextIO year period with adjustments annually based onactual costs over time. A three year actual cost history was used, although the sanitary and storm system are small and changing in size rapidly, therefore the cost history was not as relevant. This report highlights all the assumptions put into the model ioorder tobring the cost ofoperations forward over the next lOyear period. The assumptions are asfollows: l, a) Expenses are coded in two different ways. Supplies and other charges are directly coded to the appropriate utility fund, Labor charges are prorated by staff as the percentage of their time spent working ooeach utility and are subject tochange. b) Sorne of the citywide overhead is not charged to the utilities but is paid through general tax revenue. These include city clerk time, city council costs, attorney costs, building costs, and equipment cost, This may be noticeable to the customers who have well and septic systems as they are funding some utility costs through the general tax revenue. c) In order to charge costs accurately, a work order system should be implemented and an overhead rate could be determined and charged as a percentage of the budget to each utility in order to reimburse the general tax revenue. d) Depreciation schedules looked appropriate except for water distribution pipe which was scheduled at 30 to 33 years. The normal industry practices depreciate water distribution pipe over 75 years. 2. a)The inflation rate generally used byLake Elmo b2%� itwas not revised for this study. However, utilities usually experience inflation in the range of 3 to 3.5%. We would recommend the City use a higher inflation rate for this utility rate study. b) The water system growth in system miles over the next 10 years is projected at 5%per year, dThe sanitary system growth in system miles over the next lOyeao is projected at50% per year. d) The storm system growth in system miles over the next 10 years is projected at 7% per year. e) Maintenance costs are generally related to pipe length and volume but greater emphases is placed on the length of pipe. Therefore costs for a new system are expected to increase as the length of the new system expands, f)For purposes offuture expenses, vveused 5% for water plus inflation, 3O% for sanitary plus inflation, and 7%for storm plus inflation. The sanitary number was reduced from50% to30% to maintain a more proper balance in the budget numbers for water and sanitary operational costs. 3, a) Staff does not code labor time o,equipment time tojobs however, materials are charged directly to the correct utility. A work order system will help correctly track all costs to the correctutility, b) Not all preventative maintenance on the ot(|hy systems is currently being done. For example, the hydrant flushing program is incomplete and there is no valve operating program on the water system. c) The utility staffing level of three staff members for 2016 is low when compared toother utilities and we have increased it to 3.5 for 2017. This should allow for additional preventative maintenance. d)Staffing added over the next l0years basfollows: 1.8laborer added inIOl7'2FTEwater, 2FTEsanitary, .IFTEstorm 2.Xlaborer added in2Ol9'.2FTEwater, 2FT[sanitary, .lFT[storm 3.Dlaborer added inZO2Z,2FTEwater, .2FTEsanitary, .FTEstorm 4.8laborer added in2UlS'.ZFTEwater, .2FTEsanitary, JFTEstnrm 5�Y2 billing clerk added inZOl8;48%water, 25%sanitary, 3S% storm &XbiUin-clerk added in2OlZ;40%water, 25%sanitary, 3S96storm 7.Y2billing clerk added in2Ol5;40%water, 25% sanitary, 3SY6storm e) Another 8 FTE laborer should to be added tmstreets based on increased street miles. That is a suggestion but was not part ofthis study. Anew billing system bneeded and the efficiencies gained with a new system will affect the hiring of clerical staff. The billing clerk was re -proportioned for 2017 and going forward to the three utilities based on staff recommendations. Postage and software support were also re -proportioned to the three utilities based on staff experience. Based on a previous staffing study of east metro suburbs completed for White BearTownship by TKDA, the average staffing level for four similar cities was 13 staff in Public Works based on your 2025 projected population. The additions recommended here bring utility staffing to 12. It should be able to be slightly smaller asLake E|mo'se/stemswill benew relative toother suburbs. 4. Other operational expense adjustments were made asfollows: a) $25,000in meters was added forZOl7 and 20I8\u replace old water meters that should be replaced. The balance ofwater meter costs is for meters for new buildings and other maintenance replacements. b) Water purchased from Oakdale is discontinued from the projections as Lake Elmo will end the purchase inZOl7. c) Software support was increased across the three utilities to implement a new billing system shown inthe capital projects. d) insurance costs were increased for the three utilities as they expand. This insurance would be purchased from the League ofCities, e> The Metropolitan Council Wastewater Treatment expenses are based on projected flows, The numbers were shifted two years because VICES uses actual flows from the last complete year to project their next year's hill. Therefore the 2017 charges are based on the 2015 flows. The new operating cost projections for the next 10 year period should be a reasonable estimate of costs. Each year after the annual accounting is complete, the costs should be compared to the projection and the next budget cycle adjusted accordingly toalign with actual costs. City of Lake Elmo Budget 2017 1 V15/2016 Account Number WATER 601-000-0000-36100 601-000-0000-36205 601-000-0000-37100 601-000-0000-37120 601-000-0000-37170 Personnel Services 601-494-9400-41010 601-494-9400-41210 601-494-9400-41220 601-494-9400-41230 601-494-9400-41300 601-494-9400-41420 601-494-9400-41510 Description Operating Revenues Special Assessments Refunds and Reimbursements Water Sales Bulk Water Meter Sales Total Operating Revenues Operating Expenses Full -lime Salaries PERA Contributions FICA Contributions Medicare Contributions Idealth \Dental Insurance Unemployment Benefits Workers Compensation Total Personnel Services Supplies 601-49-1-9400-42000 601-494-9400-42030 601-494-9400-42160 601-494-9400-42270 601-494-9400-42300 601-494-9400-42400 Total Supplies Office Supplies Printed Forms Chemicals Utility System Maintenance Water Meters & Supplies Small Tools & Minor Egu]pment Other Services and Charges 601-404-9400-13030 601-494-9400-43030 601-404-9400-43040 601-494-9400-43150 601-494-9400-43180 601-494-9400-43210 601-404-9430-43220 601-494-9430-43320 601-494-0430-43610 601-494-9400-43810 601-494-9430-43820 601-494-9400-44030 601494-9400-44300 601-494-9400-44370 601-494-0400-46200 Engineering Services En g Svcs -Water Syst Master Plan Legal Services Contract Services Software Support Telephone Postage Depreciation Expense insurance Electric Utility Water Utility RepairsiMeint Imp Bldgs Repairs \Main( Imp Not Bldgs Miscellaneous Conferences & Training Fiscal Agent Fees Total Other Services and Charges Total Cper.ting Expenses Operating Income (Loss) Nonoperating Revenues 601,000-0000-36210 Intorest on Investments 601-000-0000-37x.xx Water Availability Charges 601-000-0000-37150 Water Connections - Municipal 601-000-0000-37180 Tower Rent 601-000-0000-39210 Transfer In Total Nonoperating Revenues New OP Homes New Development Homes Nonoperating Expenses 601-494-9400-46110 Bond Interest 601-494-9400-46xxx Bond Issuance Costs 601-494-9400-45303 Deferred Charges Amon_ Total Nonoperatrng Expenses Change in Net Assets 2013 Actual 2014 Actual 2015 Budget 2015 Actual 034,403 5107,647 5156,547 5163,405 $0 SO SO $0 5536.438 6663.994 5783,744 5440,322 02,843 52,834 52,000 $1.241 510.634 610,150 515,000 555,435 5584,317 5784.625 5959,291 5600,403 678.073 578,893 5140,000 592.578 55,609 65,686 510,000 58,615 54,619 54,757 65,000 55,495 61.080 61,114 51,600 51,286 515,241 517,836 514,400 515,199 50 SO $0 SO 51,067 53,155 54,000 52,471 5105,689 5111.440 5178,000 5128,647 5691 3360 0500 51,933 $0 3375 $1,000 $239 013,932 610,713 013,000 51,473 51.088 55,282 53,500 525,257 518,716 521,242 550,000 552,344 65,803 5714 65,500 55,016 040,320 538,656 573,500 5116,262 6108,430 53,162 5100.000 514,725 $0 SD $30,000 $.0 54,662 5179 55,000 6388 5884 59.674 510,000 516,305 5855 517,541 53,200 54,774 5550 5523 5600 0775 52,500 51.506 33,000 62,5e0 5317.759 5416,884 0375,000 6557,627 56,408 65,432 59,000 56,799 027,083 521.08 627,000 533,410 694,457 681.096 5100,000 5107,029 $0 $0 512,000 SO 513,376 029,791 532,000 57.116 51,623 51,245 64.000 51,835 53,264 51.468 51,500 0460 51,921 6445 6425 51,189 5583,752 5559,935 5712 725 5754,932 5729,761 5740,062 5964,225 6999,841 (0115,444) 544.563 (54,931) (6339,438) 52,586 516,645 57,000 526,925 SO 0788,900 51,029,000 51,237,500 5106,900 550,500 5205,000 566,000 546,506 646,935 646,000 549,742 $0 SO SO $0 5155,992 5902,080 51,287,000 51,380,167 24 25 12 17 180 128 5189,130 5306,888 5270,481 5356.513 $11,460 $0 SO SO SO 6189.130 5306,888 5270,481 5363,073 (5178,582) 5640 655 51,011,585 5672.650 USE OF NET ASSETS TO BALANCE BUDGET 5178,582 2016 2016 Projected 2017 to 2017 _ Actual Budget Change 5163,405 516.950 -89 5% Majority of Section 34 SA's nave been paid off 50 SO 0.0% 5475,487 5543,689 14 3% 2013, 2014 very dry; residential water rate decrease eff 111/16 52,000 52,000 0 03 5150,000 568,000 -54 780 Meter sales spike due to new developments and !RR meters 5790,892 5630,639 -20.3% $ I 20,003 $144,184 20.2% Staff not added until 2016 due to lack of connections $9,003 $10,814 20 2% $7,500 $9,012 20.214 $1,743 $2,091 20.2% 524,000 628,837 20.280 50 50 0.0% $3,500 $5,767 64.814 5165,740 5200,704 21 1% $500 $700 40.014 5750 5750 0.014 511,000 513,000 15,214 515,000 $25000 66.714 Includes 55,500 for annual SCADA maintenance 5175,000 585,000 -51,414 53,500 55,000 42.914 5205,750 5129.450 -37.114 550,000 520.000 -60.014 50 $0 100.014 Water system master planning budge(ed; cannot be done by FOCUS Eng. 51,000 55,000 400.014 513,500 514,000 3.780 Includes SCADA ($3.5k), Pump Motor (5800) and lift station ($3k) inspections annual!), 52,500 $9,300 284.0% $550 5800 45.580 52,000 51,880 -6.014 5570,966 $598,971 4.914 Capitali/ation of Phase I DT SW project 58,975 510,000 11.480 530,000 630,000 0,014 $175,000 50 -100.014 Able to sv,atob of Oakdale water supply at the end of 2016 512,000 $0 100.054 Repairs needed to Wellhouse 42 Roof budgeted in 2015; completed in 2015 510,000 510,000 0.080 For pump R&M 52,000 $2,000 0.054 5500 51,500 200.054 $425 5800 85.214 6379,416 5704,551 -19.980 61,250,906 51.034,705 -17.314 (6460,014) t6404.0661 -12.280 510,7e6 $20.000 1.114 $963,080 51,509,000 56.714 53k per -1. PPD WAC Includes PPD WAC fees on 1-94 and Developer Phased Build outs $231,000 5369,000 59 7/0 $1k per less Oakdale; will no longer pay in 2017 since seJb.hina off water system $46,000 50 -100.0% Effective 2017 To.ver Antenna rental fees to be recognized in General Fund 50 SO 0.0% 51,259,785 7 237 51,e98,000 50.7% 0 244 5239.330 5273,321 30 6% 346.457 353,811 15 5% $0 50 0.0% 5255.787 5327,132 27.914 5543.987 51,166,802 114.514 50 SO 8.03 LAKE ELMO STAFF REPORT DATE: November 22, 2016 CONSENT ITEM #: AGENDA ITEM: Staffing -Public Works SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND:. As part of the TKDA. utility services study completed earlier this year, the consultant laid out a staffing plan for utilities as the infrastructure grows. It is noted in his report that the other 1/2 FTE could be used for streets to account for the increase of street miles that will be maintained by the city. The Finance Committee discussed this position as part of their review of the 2017 utility budgets at the November 9' meeting. Funding for the 1/2 FTE remained in the water, sewer and stonnwater funds with the understanding that staff would look into the general fund budget for the other IA FIE. .PROPOSAL DETAILS/ANALYSIS: The Public Works Director was also at the Finance Committee meeting and noted the need for additional staff as the city takes on more infrastructure next year (water, sewer, stonnwater, streets, parks, etc). The position would be crossed trained in all areas as has been the cities past practice with public works operators, ylscAL IMPACT: Cost for an additional employee (base salary and full benefits) would be $63,940. Half of this ($31,970) would be charged to the general fund, .2FTE ($12,788) to water, .2FTE ($12,788) to sewer and .IFTE (36,394) to stormwater. Washington County Sheriff's Office "am M. Hutton Sheriff Daniel Starry Chief Deputy ssion Vision SSi The mission of the Washington County Sheriff's Office is to work in partnership with the community to provide quality public safety services in a responsible manner through innovation, leadership and the cooperation of dedicated people. Si The vision of the Washington County Sheriff's Office is to create the safest and most crime resistant community, in the nation by providing superior public safety services. 20 6 Lake Elmo Deputies • Deputy John Stoffel Deputy Mike Lindholm (relief) • Deputy Darin Ostertag • Deputy Andy Loehr (relief) Deputy Nick Bradt • Deputy Brian Krook a e 1 •isa r Population over 8,400 (estimated 2015 census) Part I and Part II crimes trending upward Accidents continue to trend upward Trending - financial scams (IRS, Senior Citizens), internet fraud and mail theft Crimes are investigated by Lake Elmo deputies or Investigation Division Narcotic cases and Prescription Pill and Opiate Abuse Pro a osal to as. one Sergeant for Lake El o To Supervise deputies assigned to Lake Elmo (specific to Lake El o City personnel have immediate access to a supervisor (daytime) Available to attend Council Meetings and be a part of city meetings (staff) "Working" Sergeant 500 450 400 350 300 250 200 150 100 50 0 169 2015 Part I Crimes 147 2014 173 2013 186 2012 500 450 400 350 300 250 200 150 100 50 0 2015 Part II Crimes 391 2014 443 2013 481 2012 Crisis Intervention Training 40 hour Training for all employees De-escalation skills to safely and compassionately handle a person in crisis Goal to have all deputies/correctional officers trained by end of 2017 Sesa e Street Project Collaborative project with the University of MN and Sesame Street Kids with incarcerated parents Naloxone y ochloride (Narcan Nasal Spray Deputies are trained and carry Naloxone Washington County Sheriff's Office 2016 2017 $527,060 (estimated) *62.75 per capita $648,356 *77.19 per capita * 2015 population estimate 8,4001 Lake Elmo 2017 Proposed $77.19 (8,400 population) Bayport Cottage Grove Forest Lake Oak Park Heights Oakdale* St. Paul Park Stillwater Woodbury Washington County Cities Police Costs per Capita 3,692 $ 788,668 $ 213.62 35,630 $ 5,912,230 $ 165.93 19,399 $ 4,032,533 $ 207.87 4,795 $ 1,322,576 $ 275.82 28,033 S 4,330,331 $ 154.47 5,366 $ 1,256,935 234.24 18,800 $ 3,209,555 170.72 66,807 10,130,395 151.64 Sources: US Census Bureau, City websites *Oakdale: 2014 actual; 2015 budget figure not available online