SUNFISH LAKE SPECIAL CITY COUNCIL MEETING – DECEMBER 6, 2011

5:00 P.M. - ST. ANNE’S EPISCOPAL CHURCH

Attendants:

Mayor:  Richard Williams

Councilmembers:  Judy MacManus, Mike Hovey and Paul Burke.

City Attorney:  Tim Kuntz

City Building Official: David Neameyer

City Planner: Alan Brixius
City Engineer: Don Sterna

City Forester: Jim Nayes
City Treasurer:  Mike Blair

City Clerk:  Cathy Iago

Councilmember Conant was absent.

1.   CALL TO ORDER:                        Mayor Williams called the meeting to order at 5:00 p.m.

2.   CONSULTANT REVIEWS:   Mayor Williams explained the purpose of the special meeting was to conduct reviews for the consultants. He advised that he would ask each consultant to review their work plan for the past year, discuss and upcoming issues they foresee for next year, list any proposed rate increases, and make suggestions relating to streamlining procedures or modifying current processes that could save money for the City in the future.  

Councilmember Burke noted that the Planner had provided a memorandum for his review and questioned why other staff members had not done the same.

Mayor Williams explained that Council had not requested a written document from staff, but indicated that Council could request a written report from staff members in the future.

Councilmember Burke asked that the Clerk contact the League of Minnesota Cities to determine if they have a template that could be used for the consultant reviews.

Clerk Iago advised that she would contact the League and also ask clerks from other small cities if they have a template for review purposes.

Mayor Williams commented that the State Auditor’s office had also suggested adopting a procedure for reviews.   

CITY CLERK/ADMINISTRATOR: Mayor Williams stated that in his opinion Cathy has done an excellent job serving as City Clerk /Administrator.  He noted that the Clerk has taken on additional responsibilities during the past year and that she should be compensated accordingly. He explained there are restrictions on her earnings due to her collecting PERA retirement and Social Security; she is limited to the amount of compensation the City may grant her so as not to exceed the IRS guidelines.  He suggested that the Council consider a salary increase for the Clerk in an amount not to exceed these guidelines and he asked the Clerk to research the amount set by the IRS.

The Mayor asked the Clerk to review her work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City.

Clerk Iago advised that she had completed the move of records from St. Anne’s Church to the Lilydale City Hall; she stated will continue to work on the records purge to prepare the records for scanning. She explained that she had taken on the responsibility of working with the Mayor and Holly Divine to produce the Sunfish Lake Quarterly newsletter. She also noted that there have been staffing changes during the past year and she has been working to advise and update the Building Official and new planning consultant on procedures and activities in the City. She further explained that staff has been responding to inquiries from the newly elected officials, which has been somewhat time consuming. She pointed out that this occurs and is expected after a change in Council.

The Clerk advised that she has also been attending the recycling meetings and is now responsible for compiling information and submitting the recycling grant application; these tasks were formerly done by the Mayor. She advised that the resolutions have been placed on the website as requested by Council.
Clerk Iago explained that she has been utilizing other members of the consultant’s staff to discuss items in preparation for the Council meetings; she advised that this saves money since the staff time is charged at a lesser rate than the consultants. She suggested that her time could also be reduced if she was able to shorten the preparation of Council minutes by reducing some of the discussion; she noted that most cities do not include a lengthy discussion due to the fact that it could be used against them if a lawsuit if filed. To save postage costs, she recommended emailing minutes to Council for review prior to the meeting and then distributing a hard-copy at the meeting for Council to retain for their records. She suggested that if Council has questions about items on the agenda, they could contact staff prior to the meeting for an explanation and this would shorten the discussion at the meetings. She advised that she plans to work with the City Attorney’s staff to begin the codification of the City ordinances next year; she noted that funds have been budgeted and approved for this purpose.

Councilmember MacManus commented that Cathy has done an excellent job for the City and that she was very pleased with her work performance.  Council concurred

Mayor Williams asked if there were any challenges the Clerk could foresee for next year. The Clerk responded that next year is a presidential election year, but she did not foresee any major challenges related to her position.

Councilmember Burke suggested that the City purchase the new Dragon software for the Clerk to assist her with the preparation of the minutes. He also requested that she provide Council with phone numbers to contact the consultant’s administrative staff to reduce costs when minor questions arise. 

The Clerk stated she enjoys working with Council and looks forward to a continued excellent working relationship; she thanked the Council for their support and encouragement.

BUILDING OFFICIAL: Mayor Williams explained the information Council is requesting from the consultants; review their work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City.

David Neameyer advised that his rates are based on fees collected for permits so there would be no change in the rate. He stated that he returned all telephone calls received for permits or inspections during the last year within 4 hours and was able to schedule all requested inspections within one or two days of the request; he noted that some requested inspections were done the same day of the request.  He explained that he has received two complaints from residents requesting building permits; why the permits not available on-line and why are the current permits are so confusing.  He advised that the reason he submitted the new permit application and ordinance changes for Council consideration was to simplify and streamline the process for obtaining permits. He stated that if Council approves the ordinance amendment at their regular meeting later this evening, the new application form and information would be accessible on-line and would shorten the process for anyone making application.

Councilmember Hovey stated he would work with the Building Official to place the information on the website.

The Mayor suggested that a summary of the fees should also be placed on the website.

Council thanked the Inspector for his work during the past year.

CITY FORESTER: Mayor Williams explained the information Council is requesting from the consultants; review their work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City.

Jim Nayes explained that he utilized the Forestry Work Plan identified by the Tree City USA program as a guideline for his work the past year. He stated he improved the sightlines along the roadways by clearing vegetation and that the roadways are in better shape than the past several years. He advised that he removed hazardous trees from City property. He also worked contacted private property owners to identify and suggest removal of hazardous trees adjacent to roadways that could pose issues for drivers. He explained that he does not remove trees on private property without Council authorization. He stated that he has observed and recorded insect infestations and diseased trees; he explained there was no infestation of Emerald Ash Borer or Gypsy Moths in the City during the past year.
Mayor Williams asked if the City would require trees to be removed if Emerald Ash Borer insect infestation occurs.

The Forester explained that there are small Ash trees in Harmon Park and the Wahl wetland and that the City has a program in place to remove these trees by 2015. He noted that most of the larger Ash trees are on private property and at this phase of the problem, no removal is recommended.

Mr. Nayes stated that he conducted the Arbor Day celebration and provided educational opportunities for residents as well as trees for planting. He noted that 95 percent of buckthorn has been removed from City property.  He indicated that for the upcoming year he would focus on compiling a “census” of City trees and continue the removal of Ash trees on City property. He explained that the Ash trees are small enough so they do not have to be hauled away and will be left in place to decay. He also plans to continue with the reforestation program and advised that the Tree Trust grant had assisted with this in Musser Park.

Councilmember Hovey asked if the trees could present a fire hazard and Mr. Nayes responded that should not be an issue; however, he stated he has access to a small chipper if necessary for the trees that are removed.    

The Mayor asked if there were any upcoming issues foreseen for 2012. The Forester responded no and pointed out that the amount budgeted for forestry services should be sufficient, unless an unforeseen weather emergency occurs. He noted that he attempts to stay below budget each year.

Councilmember Burke commended the Forester for remaining below budget to accommodate unforeseen events.

Council thanked the Forester for his report.

CITY ATTORNEY: Mayor Williams stated that Council has been very pleased with Attorney Kuntz and his sound advice on legal matters. The Mayor explained the information Council is requesting from the consultants; review their work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City.

Mr. Kuntz categorized three items for discussion; amendments to the ordinance relating to the permitting process, obtaining easements; and defining Capital Improvement Progam (CIP) projects. He commented that he does not foresee any out of the ordinary events for the upcoming year. He indicated he does not foresee a lot of development within the City in the next year.

The Attorney proposed that shifting the responsibility for researching some upcoming items may provide cost savings to the City. He advised that it would be more cost effective to utilize the services of the planner and Planning Commission to review and recommend rules for use of City parks; after their review and recommendations to Council, his office would draft the regulations into the correct format for adoption.

Attorney Kuntz also suggested that Council should review and consider if they wish to proceed with any Capital Improvement (CIP) projects in April next year; he further suggested that identifying projects early in the year may shorten the process and reduce costs. He also suggested that Council discuss public improvement projects in a more informal work session environment rather than at a regular meeting. He advised that the work session could be used to answer questions related to the scope of the project and then staff would be directed to work on the specifics of the project. He commented that the CIP is a 3-5 year plan and is not “set in stone”; he explained that it identifies projects, but does not set in motion a process or schedule.

Mayor Williams commented that a work session would identify problems associated with upcoming projects that must be resolved prior to beginning the project and allow for budget management.

The Attorney agreed and commented that the CIP may be changed or modified but beginning early in the year allows for revision and discussion of problems associated with the project.

Attorney Kuntz suggested that communication to residents should be considered prior to beginning projects. He suggested that Council utilize the Planning Commission time and expertise to develop an informational brochure that includes the 10 most asked questions relating to building permits; this could be placed on the City website and also included in the Sunfish Lake Quarterly newsletter.

The Attorney further suggested that prior to conducting public hearings on public improvements projects, it would be beneficial to send letters to affected property owners outlining the work and rationale for considering the improvement; he further suggested that conducting neighborhood meetings would also be appropriate. He noted that this type of communication prior to ordering a project prevents the release of incorrect information and provides the same message for those affected by the project. He stated this also encourages public comments prior to consideration of the project.

Councilmember MacManus agreed that communication is a key issue on all items, not just improvements.

Councilmember Burke noted that beginning discussion of projects earlier in the year would provide information on upcoming budget increases and the information could be communicated to residents when the budget is reviewed.        

The Mayor noted that he could also place information in the City newsletter to inform citizens of upcoming projects.

Councilmember Burke suggested that information relating to why the City must obtain easements for projects could also be placed in the newsletter.

The Attorney distributed a list of his office charges for services for 2012 and stated there are no changes from the 2011 rates.

Mayor Williams thanked Mr. Kuntz for his excellent service to the City. 

RECESS: Mayor Williams called for a brief recess for dinner at 6:00 p.m. Council reconvened at 6:15 p.m.

CITY TREASURER:   Mayor Williams explained the information Council is requesting from the consultants; review their work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City. He explained that he and Councilmember Conant met with the State Auditor’s office to evaluate the City’s financial reporting; the auditor had one suggestion to make the financial statements easier to read and that was to break-out the bond liability separately in the financial statements.

Treasurer Blair agreed and stated he had discussed this with the auditor and it is a matter of accounting principles; he explained that the auditor did not disagree with the current practice, but he is willing to change the procedure if Council wishes.  

Mayor Williams explained that he and Councilmember Conant discussed accounting protocol related to governmental standards of accounting and fund allocations with the auditor’s office representative. He indicated that this change would show balance on the balance sheet.

Treasurer Blair stated that Councilmember Conant reported to him that the auditor’s office suggested providing a bank reconciliation support for the cash accounts, which he sent out with the last financial statement. He noted another issue relates to the Sunfish Lake annual holiday party fund; he noted that these funds are kept in a separate account and the funds are not City funds. Mr. Blair explained that the City does not contribute toward that event and that the special fund for the party is kept separate from City funds. He commented that any work performed related to the holiday party is not charged to the City.

There was discussion relating to this year’s holiday party and it was suggested that the event be held at the Pool & Yacht Club after Christmas.

The Mayor explained that the auditor was quite satisfied with the cash controls; they suggested that another person should review the checkbook to assure it is balanced and there is a separation of responsibilities. The Mayor stated he does review the information. He noted that Councilmember Conant was concerned that the financial statements did not read the same as those in the private sector and suggested the bond funds be listed separately.
The Treasurer stated he would be glad to accommodate any changes in the reporting per Council request.

Mayor Williams pointed out that there would be a substantial tax increase for residents due to recent legislative actions to remove the homestead credit and the passage of the school levy; he questioned if the budget could be adjusted to reduce the amount of snow plowing budget so that the City tax increase was not as high.

Treasurer Blair explained that the homestead credit only applies to homes valued at less than $400,000, but the school bond levy would impact residents. He commented that in his opinion a slight reduction of $10,000 or $15,000 in the snowplowing budget would still provide a slight “cushion” in the fund for emergency.      

The Treasurer stated he has enjoyed working for the City and with Council.

Councilmember Burke stated that in his opinion Mr. Blair has been very patient and available for instruction during the past year as the new councilperson and that he appreciated his responsiveness and positive work attitude.

The Mayor pointed out that Mr. Blair has not received a salary increase for the past two years and that in his opinion some increase in compensation is warranted. Council concurred.

Mayor Williams thanked the Treasurer for his service during the past year.

CITY PLANNER: Mayor Williams noted that Mr. Brixius has only served as Planner for a few months. He explained the information Council is requesting from the consultants; review their work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City.

Planner Brixius reviewed his memorandum dated November 30, 2011 and reviewed the applications his office has processed during the past year. He explained that he received an inquiry relating to a dog kennel for three or more dogs, however at this time he is unsure if the request is for an outdoor kennel or an indoor domestic kennel. He stated he would be working with the applicant to define the scope of the request. He advised that the Planning Commission would be meeting in January, 2012 to discuss and prepare rules for parks, open spaces and geocaching within the City limits; he indicated that he would also work with the City Forester on this matter.

The Planner advised that the fee schedule for 2012 would increase from 2011 and explained that the change us due to the fact that his fee as a principal with the company is higher than that of an associate planner. He indicated that business had been slow over the past few years and therefore his company had reduced staff; he noted that business has been increasing and if additional staff is hired, the fees may be somewhat reduced. He also noted that the office secretary would be available to respond to questions at a lesser rate than the principal planners. He advised that he may send another planner to oversee the applications at some meetings if there are conflicts with attending meetings in other communities that require his services.  He noted that he would attempt to stay within the budgeted amount for planning services during the upcoming year.

The Mayor thanked the Planner for an excellent job during the past few months.

CITY ENGINEER: Mayor Williams explained the information Council is requesting from the consultants; review their work plan for the past year, discuss any upcoming issues for next year and make suggestions for streamlining procedures to save money for the City.

Engineer Sterna suggested that to better manage improvement projects, Council identify issues related to the specific project; he indicated the goal would be to identify items such as culvert replacement or road improvement. He pointed out that this discussion would layout the plan for the improvement project and provide additional time for staff and Council to review how to proceed with the project.  He noted that the discussion could include the size and costs associated with the project, as well as defining any issues or problems that may arise. He advised that staff and Council could also determine how to pay for the projects identified.

The Engineer explained that CIP projects should be identified early in the year, possibly June or July, before the budget discussions occur; he advised that earlier discussions would also assist in completion of the projects by fall versus starting later in the year and trying to accomplish the project before winter. 

Mayor Williams asked if any other engineering staff would be available to answer questions at a lesser rate than Mr. Sterna.

Engineer Sterna responded that Engineer Tom Vole has been assigned to assist with Sunfish Lake and could be contacted with questions; he indicated that for some activities, technicians could be assigned that charge a lower rate. He advised that he would manage requests and projects to reduce costs when possible. He stated that his staff works with other communities and are experienced. He offered to provide contact information by email to Council.
Mayor Williams noted an increase in the hourly rate for engineering services. Mr. Sterna explained that this would be the first rate increase in four years and that he listed the rates for various staff.  He advised it was a minor increase of approximately 1.5% and that his goal is to remain within the budgeted amount for engineering services.

Councilmember Burke thanked Mr. Sterna for offering to manage the snow removal budget and also for his negotiations to secure the contract for plowing.        

Mayor Williams asked if there were any further comments and there was no response.

3.   ADJOURN:     Mayor Williams called for adjournment at 6:55 p.m.

__________________________                                      ___________________________

Richard A. Williams, Jr., Mayor                                        Catherine Iago, City Clerk