City Council Workshop

10801 Town Square Drive City of Blaine Blaine MN 55449 Anoka County, Minnesota Minutes - Final City Council Workshop *While this is a public meeting where interested persons are welcome to attend, it is a work session for Council and staff to discuss issues before them. It is not for the purpose of receiving public input. Thursday, August 6, 2015 6:30 PM Cloverleaf Farm Room A NOTICE OF WORKSHOP MEETING 1 Call to Order The meeting was called to order by Mayor Ryan at 6:30 p.m. 2 Roll Call Quorum Present. ALSO PRESENT: City Manager Clark Arneson; City Attorney Patrick Sweeney; Planning and Community Development Director Bryan Schafer; Public Services Manager Bob Therres; Finance Director Joe Huss; Financial Analyst Ward Brown; Police Chief/Safety Services Manager Chris Olson; Communications Technician/Recycling Coordinator Roark Haver; Senior Engineering Technician Al Thorp; and City Clerk Catherine Sorensen. Present: 7 - Mayor Ryan, Councilmember Hovland, Councilmember Swanson, Councilmember Clark, Councilmember Bourke, Councilmember Herbst, and Councilmember King 3 New Business 3-3 WS 15-38 2016 EDA BUDGET DISCUSSION Finance Director Huss stated the 2015 projection shows a large reserve due to the sale of the two senior buildings. He stated the current proposed tax levy for 2016 is the same as 2015. He noted that in the proposed 2016 budget there is a deficit and that the Council will need to decide to either increase the levy or use reserves. He stated the Council has directed staff to provide two options for their review: (1) keeping the 2015 tax levy rate of 35.824%, or (2) increase the rate by 1% to 36.824%. He gave an overview of three existing EDA programs and four programs to consider for funding in 2016. Councilmember Bourke asked if the investments will have $5,000 interest on the $3 million. Finance Director Huss replied no this was an error that was not updated. He noted the rate would be 1.5-2.0%. City of Blaine Page 1 City Council Workshop Minutes - Final August 6, 2015 Councilmember Clark asked if the personal service includes the funding for the EDA director position for the year. Finance Director Huss replied yes. Councilmember Clark clarified that tax levy scenario 1 there would be not growth and scenario 2 would allow growth. Councilmember Herbst asked about the property holding cost. Finance Director Huss replied it is property tax on the property EDA holds for redevelopment including land. Councilmember Bourke stated all of the EDA expenses need to be covered. Discussed 3-1 WS 15-36 GARBAGE HAULING RFP’S Finance Director Huss gave an overview of the City’s Sanitation Fund. He noted the goal is to cover all operating costs. He stated the city has 20,150 subscribers and recycling customers. He stated the anticipated growth is 300 households per year. He noted that tipping fees will increase by $2 per ton per year. He stated all proposals would require an increase in quarterly fees to cover operating costs and the fee increase in 2016 would range from $5-$16 per quarter. He noted the fund currently has a healthy reserve. Recycling Coordinator Haver stated the City received proposals from Advanced Disposal (current hauler); Republic Services; Waste Management of Minnesota; and Walters Recycling and Refuse. He gave an overview of each of the four proposals. He ranked the proposals by cost, which showed Walter’s as the lowest cost. He noted that Advanced’s alternative proposal is not viable due to Minnesota statute. Councilmember Swanson requested the costs be shown for weekly recycling. Mayor Ryan asked if carts could be washed upon request. Communications Technician Haver replied Walter’s could arrange upon request for a fee. Councilmember Hovland stated customer service is most important. Councilmember King stated the reserve funds were used for operations for the past two years. Finance Director Huss replied the reserve was used in order to subsidize the increase. Councilmember King commented the City should not be in garbage hauling business. Councilmember Herbst stated he is in favor of Walter’s proposal; although he City of Blaine Page 2 City Council Workshop Minutes - Final August 6, 2015 is not in favor of the .27 cart washing cost. Councilmember Hovland asked about the 5.5-year contract instead of 6-year contract. Recycling Coordinator Haver replied the contract is based on calendar year in order to change contractors in June instead of December. Councilmembers Bourke and Swanson stated they were in favor of Walter’s proposal. Councilmember Clark asked about the yard waste program. Recycling Coordinator Haver replied the yard waste program will be the same. Council consensus was to bring forward a contract with Walter’s Recycling and Refuse for consideration on August 20, 2015. Discussed and Forwarded to the City Council due back on 8/20/2015 3-2 WS 15-37 2016 PROPOSED SPECIAL REVENUE FUNDS BUDGET DISCUSSION Not discussed due to time Postponed WS 15-38 2016 EDA BUDGET DISCUSSION This item was discussed prior to Agenda Item 3.1. ADJOURN The Workshop adjourned at 7:30 p.m. Adjourned City of Blaine Page 3