City Council - 11/18/2008 - Workshop APPROVED MINUTES
JOINT WORKSHOP OF THE CITY COUNCIL
& BUDGET ADVISORY COMMISSION
& OPEN PODIUM
TUESDAY, NOVEMBER 18, 2008 CITY CENTER
5:00—6:25 PM, HERITAGE ROOM II
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Sherry Butcher, Jon
Duckstad, and Kathy Nelson
BUDGET ADVISORY COMMISSION: Don Uram, Chair; Katherine Kardell, Vice Chair;
Commissioners Richard King, Jon Muilenburg, Richard Proops and Gwen Schultz
CITY STAFF: City Manager Scott Neal, Police Chief Rob Reynolds, Fire Chief George Esbensen,
Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah, Parks and
Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, Assistant to the
City Manager Michael Barone, City Attorney Ric Rosow, and Recorder Lorene McWaters
Heritage Room H
I. PROPOSED 2009-2013 CIP
Budget Advisory Commission (BAC) Chair Don Uram reviewed the commission's report
to the Council on the proposed 2009 to 2013 Capital Improvement Plan. Uram said the
BAC met monthly from April through November. Staff from each department provided
details of their 5-year capital improvement requests, including anticipated funding
sources and justification for projects. Uram said that, in general, the projects were
described in adequate detail and staff provided the commission with additional
information when requested. Uram gave a brief overview of the BAC's
recommendations.
Utility Infrastructure
BAC found that utility infrastructure funding is stable; however, staff should consider
raising rates to help cover depreciation. Conservation and alternative landscaping should
be encouraged.
Street and Roadway Capacity
Funding will be a challenge, particularly in the Golden Triangle Area and the Major
Center Area. The BAC recommends that staff consider charging businesses for capacity
improvements. Special service districts in the GTA and MCA should be also considered.
City Council Workshop Minutes
November 18, 2008
Page 2
Pavement Manaizemen
The BAC encourages the City to pursue a street utility through the legislative process to
fund both pavement management and road projects.
Facilities
BAC recommends that staff continue to look at cost/efficiency payback as part of
replacement criteria. BAC also recommends that projects be bid together whenever
possible to obtain better pricing.
Parks & Recreation
BAC recommends staff consider cutting or delaying projects by some set amount(e.g.,
$2 million). BAC also recommends funding Miller Park Baseball Stadium out of cash
park fees rather than the CIP fund. Jon Muilenburg, who was a member of the BAC
Parks & Rec subcommittee, said that most questions the commission had regarding Parks
& Rec projects were answered through meetings with Director Jay Lotthammer and his
staff. He said the BAC does feel that Parks and Recreation needs, in particular, require
ongoing evaluation.
IT
BAC feels it needs more information on the proposed transition from LOGIS and
recommends considering a third party vendor/outsourcing for HR/Payroll software. BAC
recommends conducting RFP processes to verify costs savings of software purchases.
BAC also recommends staff explore "on-demand/on-line" offerings ("rental" of
software) in addition to traditional software purchases.
Vehicle and Equipment Replacement
The BAC recommends staff quantify savings for lengthening vehicle life.
Fire Projects-SCBA Equipment
BAC recommends pursuing a lease option for this equipment.
Police Projects —Remodeliniz
BAC recommends staff consider pushing the project out if feasible.
A report on staff responses to the commission's recommendations was distributed, as
well as a status report on the 2007 BAC recommendations.
City Council Workshop Minutes
November 18, 2008
Page 3
Discussion of BAC Recommendations
Council Member Nelson said the City will need to consider the trade-off between
requiring businesses to pay for additional capacity and economic development. She is
said she is concerned about the recommendations in several areas calling for fee
increases. Nelson said there also seems to be overlap between the work of the BAC and
other commissions,particularly that of the Parks, Recreation and Natural Resources
Commission. Uram said that the BAC looked at projects in relation to the Capital
Improvement Plan and long term funding. King said the BAC only considered items
related to budget.
BAC Member Dick Proops said the presentation does not reflect a comprehensive review
of the 2009-2013 document, which was distributed at the most recent BAC meeting.
Kotchevar said the document is a compilation of all of the recommendations and findings
the BAC gathered over the past eight months.
II. BAC SUPPLEMENTAL COMMENTS ON THE 2009 BUDGET
Uram said that although the BAC's main charge in 2008 was to review and make
recommendations on the 2009 to 2013 CIP, they had two additional recommendations for
the City Council to consider.
First, the BAC recommends cutting the 2009 operating budget to 2008 levels "in light of
the current fiscal environment." This would require a$2 million reduction in the
proposed 2009 budget.
Second, the BAC recommends setting a target balance for the Economic Development
Fund. Any amount over the target would be transferred to the capital improvement fund.
Council Member Duckstad asked if the BAC has specific recommendations on where the
$2 million reduction in the operating budget would be made. Uram said that since the
BAC's charge was to examine the CIP, they have not looked at the 2009 budget line-by-
line and do not have specific recommendations on it. BAC Member King asked if the
City Council would like the BAC to develop some options. Young said if there were
more time,he would like the BAC to recommend options. Nelson asked if the BAC
looked at where the 2009 operating budget increases were. She said she recalls some of
them being in areas that are not under City control, such as increased costs for benefits,
fuel and heating. Uram said the BAC's discussions were general. King said the biggest
expense for an organization like the City is labor. He said many organizations are cutting
planned increases. Proops said cutting the proposed budget at this point poses several
problems. He said there is little time to identify areas to cut, some cost increases are
unavoidable, and employees are also affected by the economy. He recommends
offsetting the budget with cash received from the sale of City property to Presbyterian
Homes.
City Council Workshop Minutes
November 18, 2008
Page 4
The City Council Members thanked the BAC for their time and effort over the past two
years.
Council Chamber
III. OPEN PODIUM
Barbara Karwaer urged the City Council to consider the value of the Dunn Bros./Smith
Douglas More House as a historic landmark and a community meeting place when
deciding on which lease proposal to accept.
IV. ADJOURNMENT