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HomeMy WebLinkAboutBudget Advisory Commission - 06/22/2010 APPROVED MINUTES BUDGET ADVISORY COMMISSION MEETING TUESDAY,JUNE 22, 2010 6:00 P.M., CITY CENTER 8080 Mitchell Road EDEN PRAIRIE, MN COMMISSION MEMBERS: Chair Don Uram, Vice-Chair Rick King; Commissioners: Annette Agner, Eapen Chacko, Jon Muilenburg, Richard Proops, Gwen Schultz CITY STAFF: Sue Kotchevar, Finance Manager; Scott Neal, City Manager; Rob Reynolds, Fire Chief; Ward Parker, Fire Dept. Representative; Angie Perschnick, Recorder I. CALL TO ORDER/ROLL CALL Commissioner Muilenburg called the meeting to order at 6:01 p.m. Muilenburg led the meeting in the absence of Chair Uram and Vice-Chair King, who were not able to attend. II. MINUTES A. BAC MEETING HELD TUESDAY, MAY 25th, 2010 Commissioner Muilenburg asked for any additions or corrections to the minutes. Chacko questioned the implication in the meeting minutes that a significant reason to implement a duty crew would be an increase in response time. He stated that the data gathered from the Republican National Convention (RNC) was just one data point, and he thought the increase in predictability was the main benefit of the duty crew. Agner agreed that fit her recollection also. The Fire Representative, Ward Parker, clarified that two studies have been done with the same basic result(one during the RNC and another at a more typical time): the result time averaged approximately 3.5 minutes shorter with the duty crew. This information was not explicitly stated at the May 25th meeting, so it was not included in the minutes. To better reflect the tone and statements at the May 25th meeting, Chacko recommended the removal of the RNC-related statement. MOTION: Schultz moved and Chacko seconded the suggestion that the following sentence be removed from the May 25�h minutes: "During the Republican National Convention in 2008 their response time went down to 5 minutes, 30 seconds because they staffed two fire stations around the clock for four days, thereby eliminating the need for the firefighters to answer the page and drive to the fire station." The motion carried 4-0-1 (Proops abstained since he was not at the meeting). Budget Advisory Commission Minutes June 22,2010 Page 2 MOTION: Chacko moved and Schultz seconded to approve the minutes from the May 25 h meeting. The minutes were approved 4-0-1 (Proops abstained since he was not at the meeting). III. DEBRIEF FIRE DUTY CREW Proops said logic would suggest that a duty crew could save time since the two firefighters at the station could go to the fire right away instead of waiting for back up. After running the numbers, he estimates the duty crew will cost approximately $462,500 more than what is budgeted for the duty crew. Schultz and Muilenburg agree that these numbers fit with their calculations too. These numbers are based on the premise that there would be eight firefighters on duty at all times (two at each of the four stations). The BAC expects that the paid on-call firefighter amount of$340,000 that is already in place may decrease slightly but probably not significantly with the duty crew. Schultz stated that she would like to see the total dollar figure (for the duty crew and paid on-call volunteers). Muilenburg agreed the BAC needs these numbers run before further consideration of the duty crew, so the item was "tabled" for discussion at a future meeting when more data is available. Scott Neal noted that Fire Chief George Esbensen had planned to attend the BAC meeting but was required to go to an emergency hazard meeting instead. Neal said his staff would talk to Esbensen regarding gathering the requested data. IV. OTHER A. 2011 OPERATING BUDGET 1. New Positions The agenda was amended for Police Chief Rob Reynolds to present information regarding his requests for two additional positions in the Eden Prairie Police Department(EPPD)prior to the utility rate study and CIP update. Chief Reynolds reviewed challenges/needs and funding options for his requests. He stated that one of the positions is a replacement of the officer that was cut from the force in 2009. There is a possibility the EPPD could receive a grant to fund one of the positions for three years (including benefits),but that may or may not happen. Reynolds will not likely know the outcome of this grant request until September 1, 2010. If the EPPD were to receive the grant, the City would also need to commit to funding the position for an additional year after the three years of the grant are completed. The priorities for the EPPD are (1) base pay increases for current employees, (2)replacing the officer that was cut in 2009, and (3) adding a new officer. Reynolds explained that, although no new positions have Budget Advisory Commission Minutes June 22,2010 Page 3 been added since 2005, his department has experienced a significant increase in activity level (around 16% overall). Due to the poor economy, officers have not been leaving the Police department; however, typically one or more officers would leave during the year. Departures are significant since it takes about four months to train an experienced officer(longer if the person is less experienced). The department is usually operating with one or two fewer people than their staffing levels due to training. The Eden Prairie Police Department has gone beyond their maximum in utilizing people. The officers' first job is to respond to calls, and they have often had to drop their other primary duties (including traffic, park and mall monitoring). The command officers think they are being pulled completely off of their primary duty shifts far too often. Southdale Mall has been declining in recent years, and having a strong presence of officers at the Eden Prairie Center maintains the safe environment of the mall. Traffic officers are not able to spend as much time enforcing traffic laws, and that is likely to lead to more accidents. The patrol schedule has been negatively affected by the switch to PTO. Patrol officers are very reluctant to use sick time since someone else on the force will have to cover for them; however, they are very willing to use PTO, so they are missing more days from work overall under the PTO program than the previous vacation and sick days structure. There are approximately 200 more shifts that members of the force can take off during the year now. The CVI position was taken away in 2009, and replacing this position is a priority for the Police Department. The CVI position is a traffic officer with CVI certification (a certified vehicle inspector). This person inspects trucks, and many are the less safe,rarely inspected in-state trucks that route through Eden Prairie to get to and from the Cities. Although the CVI position needs are still there, the EPPD also would like to improve forensics on intemet-related crimes. EPPD Officers are reactive instead of proactive at this point, and the problems continue to grow. Crime in Eden Prairie remains a concern as car prowlers are sometimes going into cars that are in people's garages or even into houses recently. The EPPD has a reduced presence in the parks, and that is opening the parks up to activities that are inappropriate and not sanctioned. Additional needs include licensing and inspection related to pawn shops that are moving into Eden Prairie more often than in the past. Bloomington assigns 1.5 police officers to pawn shops. Craig's list has perpetuated more vice businesses and activities in Eden Prairie. Inappropriate "massage parlors" have been identified and closed down, for Budget Advisory Commission Minutes June 22,2010 Page 4 example. As cities east of Eden Prairie are stepping up enforcement of these types of activities, the problems are moving into Eden Prairie. Chief Reynolds stated he strongly thinks the positions he described are needed at this time. Chacko asked if the positions could be shared between two or three neighboring cities (for internet-based crimes, etc.). Reynolds responded that Eden Prairie does share some services with Bloomington, including teaming up for traffic patrol to heighten visibility. The EPPD was recently awarded $30,000 to share with Bloomington for extra duties. Eden Prairie has also paired with other cities at times for CVI patrol and other activities,but the City needs something to offer(a car to throw into the mix, for example). The EPPD teams up with other cities for vice crime work and drug enforcement too. Proops asked why salary raises are the first priority in Reynolds' opinion. Reynolds explained that he wants to keep wages out of the work equation (a non-issue). The City of Eden Prairie does not pay the highest or lowest wages,but police officers are in the highest paid group throughout the Cities. Many cities had wage freezes last year, so that action was seen as reasonable in Eden Prairie too. However, the data suggests that Eden Prairie police officers will be slipping somewhat relative to comparable cities if raises are not given next year. Muilenburg asked how they decide on the appropriate number of officers for the City. Compared to suburbs around the Midwest, Eden Prairie has fewer than the average number of officers per 1,000 residents. Bloomington has 1.36 officers per 1,000; Minnetonka has 1.13 per 1,000 residents. Eden Prairie currently has 1.04 per 1,000 residents; adding 3 officers would give Eden Prairie 1.1 per 1,000 residents. Schultz asked if the EPPD has considered other options to adding staff, such as interns or long-term consultants. Currently the EPPD incorporates a few civilians into some aspects of sworn work, and this is a benefit to the City. An Investigative Aid with over 25 years of experience helps with sworn work such as check fraud and financial crimes. If the EPPD became unionized, they would no longer be allowed to utilize civilians for sworn work. A crime analyst who does sworn work and is great at the job makes many other positions more efficient. Reynolds explained that it takes months of full-time work for new employees, including interns, to get up to speed. Internships provide experience for the students more than help to the EPPD. There is a benefit to using internships as a way to try out potential hires,but interns are not a more cost-effective way to have work completed. Schultz asked if consultants could be used instead of sworn officers for internet crimes research. Reynolds responded that a police officer needs to investigate each situation, and a crime analyst assists officers currently in following the chain of evidence. It may be possible to add volunteers from the reserve unit to assist the crime analyst in the future. Budget Advisory Commission Minutes June 22,2010 Page 5 Muilenburg inquired as to how intemet crimes as handled by the EPPD since they are often regional, national, or even international in scope. He wanted to know how local police isolate Eden Prairie crimes and avoid overlapping with state and federal staff. Reynolds said EPPD would be involved in victim-based crimes that have a link to and a benefit for Eden Prairie residents. Muilenburg asked how the EPPD would proactively find victims, and Reynolds said they could identify issues and do proactive work to prevent further similar crimes. Muilenburg asked if businesses that benefit from having officers in the mall or at pawn shops could be assessed a surcharge to bear the cost of this police work. Neal said the businesses are not currently assessed a surcharge, and Reynolds added that the EPPD would be required to spend time at the Eden Prairie Center often anyway due to incidents that may occur. It was noted that the Eden Prairie Center does have its own security staff too, and there is a good working relationship between the mall staff and the EPPD officers working at the mall. Muilenburg asked if pawn shops coming into Eden Prairie could be required to pay a licensing fee, and Neal affirmed this would be an option. There must be a nexus between the fee and what the fee will cover,but the City could recover costs related to the businesses. There is currently a massage ordinance that Eden Prairie is working on to recover costs related to monitoring the businesses. Precious metals dealer licensing fees are approximately $10,000, and regular police checks are needed for these businesses the way they are for pawn shops. Schultz inquired as to whether or not the total cost could be recovered for monitoring pawn shops. Neal confirmed that the total cost, including benefits, could be recovered for an EPPD officer monitoring pawn shops. A cost allocation plan from the City's Finance department would be needed for this. 2. Other Items V. UPDATE ON UTILITY RATE STUDY Kotchevar stated that great progress has been made on the Utility Rate Study, and the findings will be ready for presentation at the next BAC meeting (July 27th) VI. 2011 TO 2015 CAPITAL IMPROVEMENT PLAN Kotchevar presented a new report that will help BAC members see where money goes from the CIP and when it is needed for projects. This is referred to as the Funding Source Summary. The City can fund the next two year period,but at the end of the five- year period, the CIP would be nearly negative $2 million. Operating items come out of the Economic Development Fund in addition to projects (almost$1.3 million). The Facilities Internal Service Fund (ISF) would be approximately negative $1 million after five years and negative $140,000 after the upcoming two-year period. The IT ISF fund grows in balance with an ending balance after five years of about $860,000. The Park Budget Advisory Commission Minutes June 22,2010 Page 6 Improvement Fund stays positive through 2013, and then it dips negative in 2014 and ends up positive at the end of five years. Proops asked if the road improvements and lake stabilization numbers were included. Kotchevar responded that these are included in the Engineering department budget(not in sources and uses). Kotchevar only printed the Funding Source Summary report for projects funded through the City dollars and not through assessments, and other funding sources. The Expenditures reports show projects by category and include department summaries by year. Each project is listed along with a specific funding source for the project. All spending and funding sources for the five-year period are shown, and the total is approximately $254,750,000. Muilenburg suggested it could be helpful to add shaded lines to the report to help BAC members read across the lines. Kotchevar said she would see if that is an option,but it may not be possible in the program she used for this report. Chacko asked about the Cedar Park spending, and Proops responded that some of the costs are required maintenance and others are people's wish lists for future development and spending. Schultz said many funds are in the negative, and she wondered what the City would do realistically about this. Neal noted that the City Council has seen the CIP plan, including the negative numbers. Neal would rather show one CIP document rather that the suggestion for two documents (a realistic version and an ideal version). Neal added that the decisions will be to add revenue or cut projects; they are hard but not complex decisions. The question was asked: is there an end in sight for the Cedar Park lease deal? Neal responded that MAC has sent the long-term use lease agreement to the City of Eden Prairie attorney; progress is being made currently. Also, there is a three year lease on Flying Cloud fields. Muilenburg asked about the priority numbers in the CIP reports, and Kotchevar clarified that these numbers are likely left in from the previous period. The priorities have not been finalized and added into the reports yet. Chacko asked if the BAC wanted to divide projects into core vs. non-core projects. He would like to see a context for the numbers, including whether or not a specific agreement or commitment was made on behalf of the City. Kotchevar stated she would like to know what projects the BAC wants more information on (including tours, meeting people, and further discussion). Each project has a page on the web site with more information. Proops said that he would like to know whether items included in the general category of maintenance are safety issues or risks to property or just nice to do, for example. Muilenburg and Agner agreed that it will be important to categorize projects, including whether or not commitments have been made by the City already regarding the project. Agner suggested a key including numbers and categories, such as 1=repair, 2=commitment, etc. Chacko asked whether 20-40-15 projects were included in the CIP reports, and the response was that they are not since these projects are completed or in process currently. Muilenburg said that understanding the motivation for projects would help. Agner said Budget Advisory Commission Minutes June 22,2010 Page 7 there is useful information on the web site about the CIP projects for BAC members to review. Schultz added that it would be helpful to see what needs to be done. Neal suggested clarifying which activities are (1)health and safety, (2) investment preservation, (3) enhancements, (4) commitments the City has made (and ramifications if they don't follow through on the commitment), and (5) critical maintenance. Chacko stated that for some functions Chief Reynolds wanted to add, sharing resources would be useful. Chacko would like to consider that model for providing the services. Muilenburg agreed that there are other groups already involved in areas such as internet crime, and he was not sure if the EPPD needs an independent crime capability. There seems to be a lot of potential for growth of activities, and that may not be necessary. Proops said that department heads are good, motivated people,but they often want to grow the department and there is no lack of things to do. Part of the BAC's role is to say "good idea, but...let's not do it; it's too expensive and non-essential." VII. OTHER B. 2011 OPERATING BUDGET 1. Other Kotchevar noted that some minor changes occurred recently to the budget: payment to the Fire Relief Pension Association went down, and the duty crew and two new police officers are included in the 2011 adjusted budget. Schultz clarified that the 2011 budget would not include the full estimated cost for the duty crew as revised by the BAC during the meeting. Chacko asked about parking lot maintenance costs. Neal explained that a few parks are identified each year for parking lot maintenance. Kotchevar clarified that the budget includes a 2% wage increase for 2011 and 2% wage increases for each year going forward. There is a 2% tax levy increase included for each year, and 1% increases for everything else. Neal said the City needs to make program and service-level decisions since the City will not follow this CIP and end up in the negative (these CIP reports do not predict a realistic future). It was noted that the City is already being charged for dispatching services from Hennepin County, and Eden Prairie does not use these services. Neal explained that the City does not envision that this will be the model going forward for Hennepin County's dispatching services. It was added that when the City has assessing done through the County, the residents participate in cost-sharing for the service. VIII. ADJOURNMENT The meeting adjourned at approximately 8:10 p.m.