Committee of the Whole

COMMITTEE OF THE WHOLE August 29, 2017 Page 1 Members Present: Barney (Mayor), Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky Members Absent: None To the Honorable Mayor and All Aldermen: Following are the recommendations of the Committee of the Whole meeting called to order at 4:15 p.m. on August 29, 2017: 1. The City Council approve the 2017 Nuisance Abatement/Weed Cutting list for certification to Ward County for collection with property taxes. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 2. The City Council pass an ordinance to amend the 2017 Annual budget to increase the Capital Equipment Purchase fund revenues and expenditures using Sales Tax Major Projects funds for the purchase of a Rear Load Pac-Man Garbage Compactor for the Minot Municipal Auditorium; approve the transfer of funds from the City of Minot Sales Tax Major Projects Fund (429-7300-451.07-93) to the Capital Equipment Purchases and authorize the Mayor to sign any necessary documentation. (REC031) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 3. The City Council pass an ordinance to amend the 2017 annual budget to increase the Street department operation supplies and books/subscriptions revenues and expenditures and decrease the capital equipment purchase revenues and expenditures for the turf mower accessories. (4273) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 4. The City Council approve the final payment amount of $22,890.18 to be paid to Meyer Contracting for SWIF Action A 10th St/3rd Ave NW bank repair. (3135.2A) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. CITY OF MINOT COMMITTEE OF THE WHOLE August 29, 2017 Page 2 5. The City Council ratify of the acceptance of the grant offer for the following projects: Acquire Snow Removal Equipment (AIR060); Reconstruct Service Road (AIR049); Reconstruct Apron (AIR029); Conduct Environmental Study (AIR063); Install Runway 8/26 End Identifier Light (AIR061)-Phase 1 Design; and authorize the Mayor to sign the applicable documentation. These projects have been previously approved by City Council, with funding sources identified as 90% FAA, 5% State, and 5% City. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 6. The City Council award the bid to Marco in the amount of $6,887.88 for a copier for the Inspection, Traffic, and Planning Departments and pass an ordinance amending the 2017 annual budget to increase capital purchases account by $6,887.88 for the purchase. (4295) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 7. The City Council award the bid to Titan Machinery in the amount of $15,900 for the used 2012 TCM forklift. (4267) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 8. The City Council award the bid to Bluestone Construction Inc, in the amount of $642,060.50 for improvements of Paving District 498 and authorize the Mayor to sign the agreement. (4288) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 9. The City Council approve the Airport Lease, T-Hangar between the City of Minot and M20K LLC c/o William Quam for T-Hangar No. 12 for $75.00 per month; and approve the Airport Lease, T-Hangar between the City of Minot and Bryan Sharp for T-Hangar No. 14 for $75.00 per month; and authorize the Mayor to sign the agreements. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 10. The City Council authorize the Police Department to apply for and accept the Fiscal Year 2017 Byrne Justice Assistance Grant (JAG) and authorize the Mayor to sign the Memorandum of Understanding. ********** CITY OF MINOT COMMITTEE OF THE WHOLE August 29, 2017 Page 3 The above motion by Alderman Wolsky, seconded by Alderman Sipma. Alderman Wolsky asked the Police Chief to explain why the equipment is being housed in a trailer and if it would be beneficial to partner with the YMCA. Chief Olson explained, this request is for equipment used to conduct job specific physical agility testing. The testing conforms to new standards that were implemented statewide. Currently, the only equipment is in Bismarck and Grand Forks. This agreement will allow the Police Department and Sheriff’s Department to share the equipment. The trailer will be used to store and relocate between testing sites. Whereupon a vote was taken on the above motion by Alderman Wolsky, seconded by Alderman Sipma, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 11. The City Council award the bid for a Landfill Fueling Station to O’Day Equipment in the amount of $40,210.47 and take the additional $210.47 that is over the budgeted amount from the Landfill operation supplies account. (4261) ********** The above motion by Alderman Straight, seconded by Alderman Wolsky. Alderman Wolsky shared his concerns over the bidding process because the bid price was so close to the budgeted amount. He asked if there was a possibility that the bid rose to meet the forecast. The Public Works Director said they check with different suppliers to see what to expect a project to cost. In this instance, the purchase is for a larger fuel tank to tie into the existing fuel system and it didn’t vary from the cost estimates. Upon further questioning, Mr. Jonasson said it would last about 20-30 years. Whereupon a vote was taken on the above motion by Alderman Straight, seconded by Alderman Wolsky and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 12. The City Council approve the development agreement for Southwest Business Park Addition and authorize the Mayor to execute the agreement. (4293) ********** The above motion by Alderman Olson, seconded by Alderman Straight. The City Engineer explained, there was one small change to the agreement. Under item #8, Planning Requirements, section (c) was changed to read: “Sidewalks, per City of Minot specifications, shall be installed by the property owner along all public streets,” instead of being installed by the Developer. CITY OF MINOT COMMITTEE OF THE WHOLE August 29, 2017 Page 4 Upon questioning by Alderman Wolsky, Mr. Meyer said, there is a consistent model for development agreements which was generated with the help of the Attorney’s Office and there is nothing unique in this case. Whereupon a vote was taken on the above motion by Alderman Olson, seconded by Alderman Straight and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. GENERAL INFORMATION, QUESTION AND ANSWER SESSION President Jantzer explained the format of the meeting and stated the purpose is not for public input or debate but rather an opportunity for the Council to ask questions to department heads regarding the 2018 budget. He reminded, there will be a public hearing on September 14th and the final adoption of the budget on September 21st. The City Manager presented information on the preliminary FY2018 budget. He reminded the Committee of the principals and goals used to guide the budget process and explained how the approach differed from previous budget cycles. He said the staff used 5-year historical data and future projections to forecast their department’s finances. They also based their requests on needs rather than wants in order to produce a constrained budget. He stated, however, the cuts made in each department represent needs that still must be addressed in the future. He compared the 2018 budget to what was approved in 2016 and 2017 and explained how the overall budget has basically stayed flat year over year. In the past, sales tax reserves have been used to subsidize a portion of the unable to be covered by other revenue. Since sales tax reserves are depleting and collections have decreased, that is no longer an option so another revenue source, property tax, must be utilized. Mr. Barry demonstrated how the median assessment in Minot has nearly doubled over the past ten years but the mill levy has dropped 36 percent. The consolidated property taxes have increased about one percent per year when the CPI illustrates an annual inflation rate of two percent, meaning the increase in taxes has not kept pace with inflation. He also showed, the City of Minot is the only taxing entity that has drastically reduced their tax levy over the past ten years, at the rate of 31.6 percent which compares to Ward County who has decreased by 9.3 percent. The City Manager then gave a comparison between national, state, and City of Minot statistics. It revealed that Minot has a higher average median income and higher average home value than the national and state averages but has a lower property tax burden. He also illustrated the value of the property taxes collected by determining the dollar amount distributed to each department. He reminded the Committee of future projects that will need funding and explained that if the current sales tax allocations are redistributed away from property tax relief, there will be an even greater effect on the mill levy. The proposed budget will result in an average increase of 10 percent to the total property tax bill, assuming there is no change by other taxing entities. CITY OF MINOT COMMITTEE OF THE WHOLE August 29, 2017 Page 5 He concluded by stating, revenues are down, including sales tax collections, property tax valuations, State Aid, HUB City allocations, and Surge funding. The sales tax reserves fund has been significantly reduced the past few years and expenses have stayed largely flat but needs continue to mount. Questions for: Finance Director Upon questioning about the line item for parking ticket revenue, the Finance Director explained, the amount was estimated using historical data and the year-to-date information to make a projection. He responded to questions about Arena Maintenance, budgeted for $80,000, by saying, it includes a combination of items. The city has contributed to costs to maintain a sheet of ice at the All Seasons Arena. There have been discussions from the other entities who split that cost, whether to continue to maintain the ice sheet. The maintenance fund was established to hold a reserve when the arena had issues with a cooling plant. The fund is not specifically directed toward All Seasons, it could be used for other arenas as well and is capped at $400,000. Upon questioning about the employee pay plan, Mr. Lakefield said, freezing salaries would decrease the average property tax payment by about $17-$18 annually. He also explained the comparison that has been drawn between MSU and the State of ND freezing their salaries. He said, those entities provide benefits to their employees whereas the City employees pay premiums for health insurance. He said, the increase in insurance premiums will cost an average employee about 0.13/hour out of an average raise increase of 0.49/hour. Upon questioning about liability insurance, Mr. Lakefield explained, the City has not carried full coverage on vehicles in the past. This practice was recently changed and the rates increased. Police Chief The Police Chief answered questions about the increase in cost for Prisoner Care. He explained, the City pays a booking fee and a daily fee to Ward County when a prisoner is put in jail. It has not been used in the recent past because there hasn’t been any space available. When the new jail opens, it is expected the expenses will increase. He said, due to a change in medical billing, there will also be an increase for medical care of prisoners. Chief Olson gave an update regarding staffing. He said there are currently 80 total Officers and the changes in the budget reflect the officers eligible for promotion through the career ladder. He added, right now staff is much more effective than in the past with a rate of 95% trained up. City Engineer The City Engineer explained, the Inspection Department is currently staffed at a comfortable level. One inspector has retired and the position will not be filled and there is a potential transfer of one employee to work under the NDR grant. He also said, once Trinity begins construction on their new facility, there will be an electrical inspector on site. CITY OF MINOT COMMITTEE OF THE WHOLE August 29, 2017 Page 6 City Manager Upon questioning regarding the Parking Authority, Mr. Barry stated, there is a separate Parking Authority Board who governs that section. There was a van that has been used to shuttle passengers but it is not currently in use. The HR Director said, the budgeted amount is based on historical data and is a placeholder but the money has not been paid out in the past year. The City Manager explained the importance of maintaining the Public Information Officer Intern position and said it has been budgeted in 2018 for 29.5 hours. He also said a modest amount was placed in the budget for the possible City Council retreat. The City Manager responded to questions about the Legislative Assistant and whether it is an ongoing role. He said, the current contract expires mid-2018. Mr. Goettle provided a rate sheet including the number of hours worked and it suggests the City is getting a great value for the amount of work. He said, Minot needs a strong presence to ensure our needs are met and his recommendation is to continue this role. The needs of the City have not dwindled and the HUB City allocation still continues, as well as flood funding. The Legislative Assistant’s efforts were instrumental in securing $190 Million in flood funding. Public Works Director The Public Works Director was asked about several line items including equipment for different departments. He explained, with the addition of numerous lift stations, duplications of equipment are necessary because they are used every day for multiple locations. He also described the transfer facility and said that state statute requires an architect or engineer to design any structure over $100,000. The budget contains $250,000 for design work because the estimated building cost is about $2 Million. The transfer facility will include electrical work as well as design for an area to collect hazardous waste. Mr. Jonasson also explained the need to maintain all of the buildings and compost sites as they age and require repairs. Auditorium/Recreation Director Mr. Collins discussed the participation in activities like softball, basketball, and volleyball. He said they have leveled off over the past few years which affects the user fees. He further explained how some events have not taken place since before the facility was used for Ramstad School. They now have additional office space and host several meetings but events like the circus and gun shows have not come back to the Auditorium. There being no further business, the meeting was adjourned at 6:22 pm. Respectfully Submitted, Kelly Matalka, City Clerk CITY OF MINOT