Breezy Point City Council September 4, :00 p.m. Regular Meeting Agenda
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1 Breezy Point City Council September 4, :00 p.m. Regular Meeting Agenda 1. Call to Order 2. Pledge of Allegiance 3. Consent Calendar A. Council Minutes 8/6/18 regular B. Approval of Claims totaling $52, (2133E-2134E, Checks & ) C. Update on 2018 City of Breezy Point Election Races 4. Open Forum 5. Mayor & City Council Reports A. Mayor B. Council members 6. Committee Report A. Personnel Committee 1) B. Finance Committee 1) Preliminary 2019 Budget 2) Resolution 2019 Preliminary Levy 7. Administrator and Staff Reports A. Approve Revised North Star Center Agreement B. Public Works Discussion on Knoxies Property C. Public Safety Discussion/Approval on 2019 Patrol Vehicle 8. Adjourn Upcoming Meetings and Dates September 11 September 13 September 19 October 1 7:00 Planning Commission 5:00 Parks and Recreation 3:30 Cemetery Committee 7:00 City Council
2 Breezy Point City Council August 6, :00 p.m. Regular Meeting Agenda The meeting of the Breezy Point City Council was called to order by Mayor Tom Lillehei at 7:00 p.m. Councilmembers present are Gary Bakken, Rebecca Ball, Gary Mitchell and Michael Moroni. Staff present included Administrator Clerk Patrick Wussow, Chief Kevin Merschman, Finance Specialist Kari Jacobson, Deputy Clerk Kathy Millard, Deputy Clerk in Training and Deb Runksmeier. Also present was Justin Schulz, WSN. All present stood for the pledge of allegiance. Life Saver Award was presented by the mayor to Chief Merschman, Officer Dwyer, and Officer Rieber. Kevin Lee from North memorial Ambulance Service presented an award to First Responder, Lacy Jo Fox. The survivor, Dr. Casey Ryan, spoke and gave his thanks to city. Consent Calendar A. Council Minutes 7/2/18 regular, 7/23/18 Special B. Approval of Claims totaling $192, (2109E-2111E, 2117, 2123E and checks , , ) C. Approve Payment for Pratt Excavating. CONSENT CALENDAR WAS APPROVED AS PRESENTED. Open Forum - Opened and closed with no comment. Mayor Report Mayor Lillehei spoke with the county commissioner at the Fair about Golf Cart use on County roads. Council Members Report Moroni commented on the Night to Unite activities at the City Park 08/ pm Mitchell complimented the Public Safety Department after seeing the Offense Summary and said he feels this is the safest place he ever lived. Ball noted the Comprehensive Plan Core Team will meet on August 21, 2018 at 6pm at City Hall. Committee Report Personnel Committee No Comment Finance Committee is working on the 2019 Budget Breezy Point City Council August 6, 2018 Page 1
3 Administrator and Staff Reports Development Agreement for North Star Center Ball mentioned that Page 6 needs a year added to the date of the final plat. Bakken complimented the resort, city and Landecker on their work with this project. MOTION BAKKEN/MITCHELL TO APPROVE WITH THE DEVELOPMENT AGREEMENT WITH WHITEBIRCH, INC FOR NORTH STAR CNTER, MOTION CARRIED Authorize RFP for Auditing Services MOTION MORONI/BAKKEN TO AUTHORIZE SENDING OUT THE RFP FOR AUDITING SERVICES, MOTION CARRIED Meeting adjourned at 6:22 p.m. Patrick Wussow, Administrator/Clerk Breezy Point City Council August 6, 2018 Page 2
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12 Memo to: From: Breezy Point Mayor and City Council Patrick Wussow, City Administrator/Clerk Date: August 15, 2018 Re: Update on 2018 City of Breezy Point Election Races The following individuals have filed for Mayor (2 year term) and City Council (4 year term/2 seats open); Mayor: Tom Lillehei is running unopposed for Mayor City Council: Michael Maroni and Gary Bakken are running for the two open seats on the City Council. The General Election is Tuesday November 6, 2018.
13 TO: Mayor and City Council FROM: Patrick Wussow, City Administrator/Clerk Date: August 28, 2018 RE: 2019 Preliminary Budget With the preliminary budget the Finance Committee is recommended we start with a 4% increase in the levy. After the City Council adopts the preliminary levy they can reduce this number but not increase it. The Union contract is set for 2019 and wages will increase by 2.5% January 1, Compensation and Health Insurance are spread throughout the budget and have been adjusted to account for the new compensation plan and health insurance premiums increasing by more than 20%. The good news is that the City experienced a 5.8% growth in Market Value of properties in Breezy Point for this next year. Tax capacity doesn t generally equate to the same increase based on the type of added market value as tax capacities are different for different types of property. We are continuing the process of using the Revolving Capital 401 Fund changes that started with the 2018 budget. We received positive feedback related to this change. If you have questions about any line item that I haven t addressed, please let me know. I have included Resolution 18-?? which sets the preliminary levy at $2,042,201. It also establishes the budget meeting as December 3, Revenues Tax Forfeited Land Sales. $5,000. Is a slight increase for It is difficult to know what will sell and the amount we ll receive. Building Permits has been a very good year. It is not even September and the city has issued sixteen new single family residences and a new Clinic and a potential pharmacy. That being said I have only increase revenues slightly. Many of the additions, garages, and remodeling s have decreased. This might be a number that changes before the final budget. We typically see a bump in permits in the fall so we ll see where this goes. Reimbursement for Services. We have again proposed that the Cemetery reimburse the General Fund for some of the PW labor. We are still not at a point where all labor costs can be accommodated. It has been proposed that we receive $2,000 from this special revenue fund for labor costs. We have also been doing a few more services such as plowing of the runway which adds to this amount. This total is $3,500. Highways and Streets. No increase in this item. This is where we code mailbox support sales and installations. We also use this code for culvert sales.
14 Fines. This line item has been shown with no change. This line item seems to ebb and wane so it is difficult to find consistency here. Expenditures Compensations. The amounts in all line items recognize any step and COLA increases of 2.5% for all employees. Health and Dental Insurance. Health Insurance will have a more than 20% increase and dental saw a 2% increase. We are offering two health insurance plans versus three so we will see a variety of employees change plans which will effect what the City pays. Dental rates are established as single, single plus one, and family. City Council This line item has remained the same as that of last year. Administration Capital Outlay. $8,000. A new furnace (City Hall has two units) for City Hall is budgeted at $5, plus the routine budget of $3,000. City Attorney This line item has remained the same as that of last year. General Government Professional Services. For 2019 we are budgeting for potential TIF project. Comprehensive Plan rewrite will have the remaining expense from Planning and zoning budget. Prosecution Legal. The County Attorney has informed us the new rate for 2019 will be $8,000 which is a $2, increase from 2017 actual. Animal Control. Same amount for The new contractor and the process with Babinski is working well. IT Support. This was reduced in 2018 and will stabilized rates for 2019 through our contract with Sourcewell. Transfer to Other Funds. Here we have budgeted for transfers to the 401 Fund. The amount of $124,000 includes $12,000 for land acquisitions, $2,000 for signs, $100,000 for road improvements, and $10,000 for accrued employee liabilities. Planning and Zoning Professional Services. This will be used to deal with the costs of the Comprehensive Plan rewrite. Building Inspector. This line item is proposed higher than 2018 by $3,400. In 2018 we made a small dent in outstanding permits, we expect more progress to be made in the winter of The building inspector doesn t receive final payment on these until the permit is closed out (Excluding new Clinic). Much like the revenue side of things this
15 maybe an area that changes before the final budget is adopted. These expenses are revenue driven for the most part. Public Safety Liability Insurance. The Finance Committee has asked that the liability insurance component for the paramedic program be put in the police budget. Previously this was lumped into the liability insurance for the city overall and in General Government area of the budget. As council may recall we questioned the cost of Excess Liability and got LMCIT to restrict that excess liability to the paramedic program with liability coverage required under the North Ambulance contract at a projected cost of $2,500. This will save the city about $7,000. Training and Education $8,000. The needs for police training seem to constantly increase and there may be more to come with the recent issues in the metro area. There was some funding for training approved by the legislature this session but we re uncertain if this is for new training or to help departments get the training they need but were unable to afford it. This item could change in either direction. Motor Fuels is shown with slight increase of $500. Hopefully the price of fuel will continue at these relatively lower rates. IT Support is shown with a slight increase of $1,500. Some of this has to do with the service offered by Sourcewell. In the past the extended warranty on the server paid for 3 hard drive replacements. The server has 6 hard drives so we could see other failures but hopefully these types of problems are behind us. Auto Insurance. This has seen a relatively large increase to $6,000. Kevin is working with LMCIT to verify why we are seeing such a large increase. Building Maintenance. $10,000 for routine maintenance Capital Outlay. $37,600. For 2019 SUV, related equipment, and installation has been included. Body Cameras were budgeted in 2017 ($16,000) and this cost will come from the 401 Fund as a carry over. Public Works Motor Fuels. $18,000. We re hoping fuel costs remain consistent and we don t get excessive snows. Part Time staffing. $4,250. New for this year, we are proposing to add a part time lawn mowing individual to be utilized during the summer months. This will allow our Full time employees to concentrate on what we will identify as skilled labor projects. Repairs and Maintenance. We ve increased this by $9,000. As some of our equipment ages and we do more with them the repairs are becoming more common. Also budgeting a set of new tires and mechanical work on the grader. Blacktop Materials have been held consistent at $18,000. Professional Services has increased to $3,000. With the goal to improve things and a younger staff wanting to make changes it was felt more resources would be helpful.
16 Dust coating has remained the same at $22,000. We re dropping off some of the roads we have dust coated in the past as they are being paved and add others that haven t seen dust coating. Everyone on gravel roads wants dust control regardless of its use. Capital Outlay. $20,000 budgeted again, it is time to replace the Sterling and acquire a new dump-truck at a projected cost of $215, Transfer Out. Rather than budget for capital and have unspent funds transferred we have taken the approach to say these funds will be transferred to Revolving Capital for future equipment purchases. Unspent funds from Capital will still be transferred to the Revolving Capital Fund. We are proposing to increase this amount to $60,000 for future equipment purchases. The loader and other dump truck are nearing replacement age and miles. Parks Landscaping. $1,200. Capital Outlay. $42,000 showing a significant increase. The Parks and Recreation Committee is taking the time to conduct a site visit for each of the City s Parks. Many needs are being identified including replacing the 20 plus year old playground equipment. EDA Revenue - Property Tax. We re proposing to levy $2,000 for our BLADC participation. Expense - Donations. This line item shows $675 for the Initiative Foundation and $2,000 for BLADC. Cemetery Fund Revenues. $7,000. We have had some very busy years recently, particularly with sales in the columbarium. It is difficult to understand how best to budget for this function. As this is a special revenue fund all proceeds stay within the fund and can be used in subsequent years. Expenditures. We will again be budgeting $2,000 transfer to the general fund for public works labor. Debt Service Revenues. We ve cleaned up the debt service line items to be less confusing for the Crossover Refunding bond. We have assessment income from the 2007 bond. Assessment income from the 2007 bond is pledged to the 2012 Crossover Refunding Bond. The assessment income is budgeted at $77,500. Expenditures. For the Crossover Refunding bond the principle is $225,000, interest payments are $25,405 for a total of $250,405. Projected revenues are at $270,000 and expenditures at a total of $251,655. This gives us some margin for tax collections being short.
17 Revolving Capital Fund, 401 Fund This remains a work in progress as to how this is being incorporated into the budget process. Revenues. Recycling has been added. This was previously in the General Government section of the budget. We receive SCORE funds from the county to fund recycling. In 2017 we received $16,000 but the projected amount for 2018 is to be $3,200. We now grant compensation to haulers based on the ton and we ll have a balance (from 2016 and 2017) that is used to pay haulers based on their recycling quantities. Special Assessments, 2005 and 2008 Assessment Income are all now shown in this fund. These were previously shown as revenues in the general fund and pledged towards road improvements. Placing them in the 401 fund removes the need to transfer funds to this fund at a later date. A transfer at year end may be accomplished to accumulate these revenues in the road improvements line item. Transfer from General Fund is still shown but we have established new line items to better clarify what goes where. These include Land Acquisitions at $12,000, Signs at $2,000, Road Improvements at $100,000, Park Equipment Replacement at $2,500, and Accrued Employee Liabilities at $10,000. The expenditures were shown for these in the Transfers to Other Funds line item in the General Government section of the general fund. These are Transfers In for the 401 Fund. Expenditures. Recycling has been added as a line account with the budget matching the revenues at $3,200. We anticipate this line item will exceed that budget amount but we have adequate resources in this line item to address these expenses. Police shows a budget of $16,000 to match the needs of the proposed capital expenditures. Road Improvements shows a budget of $190,000. This is proposed to be used for seal coating in $100,000 of this is being levied and the remaining amounts come from the balance designated for road improvements. Park and Recreation Replacement is also shown as a line account with a budget of $19,000. Sewer Fund Will be addressed as part of final budget process.
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30 RESOLUTION A RESOLUTION SETTING THE PRELIMINARY LEVY AND THE BUDGET MEETING FOR 2019 FOR THE CITY OF BREEZY POINT WHEREAS, the budget process started in July with June financial statements being reviewed and a preliminary budget being assembled; and WHEREAS, the Finance Committee, at their July meeting recommended that a percentage increase in the levy of 4% be set for the preliminary levy; and WHEREAS, this preliminary levy represents an increase in the levy of $78,539; and WHEREAS, a draft budget has been assembled and reviewed by the Finance Committee at their August 28, 2019 meeting for recommendation to the city council to set the preliminary levy at $2,042,021; and WHEREAS state law requires that a budget meeting be set between November 25 and December 30, 2017 to discuss the budget and set the final levy. NOW THEREFORE BE IT RESOLVED that the following amounts represent the final levy set by the City of Breezy Point for General Fund Levy $1,844,021 EDA Levy $ 2,000 Cemetery Fund Levy $ 6, Refunding Bond $ 190,000 Total $2,042,021 BE IT FURTHER RESOLVED that the budget meeting will be held December 3, 2018 at 7:00 p.m. Tom Lillehei Gary Bakken Rebecca Ball Gary Mitchel Michael Moroni Adopted this 4th day of September Attest: Mayor Tom Lillehei Patrick Wussow, Administrator/Clerk
31 Memo to: From: Breezy Point Mayor and City Council Patrick Wussow, City Administrator/Clerk Date: August 20, 2018, revised August 28, 2018 Re: Review and approval of Revised Development Agreement with Whitebirch, Inc. for North Star Center The proposed development agreement for the North Star Center is being presented with changes from the agreement from last month. Due to a misunderstanding on my part I thought the owner of the development had agreed to the wording that discussed the potential future Roundabout, but that was not the developers understanding. I am providing the City Council with the agreement that eliminates discussion of a Roundabout, which would have been item 18.c. Additionally, I have revised the dollar amount for item 10. (Faithful Performance of Construction Contracts and Security.) which is being reduced by $39,000 because that portion of the work is completed. This revised agreement is signed by the developer in anticipation that the City Council will also sign. On August 28 I received the attached letter from Crow Wing County Assistant County Engineer Rob Hall requesting that the City require additional improvements at the intersection of Ranchette and County Road 11. Please review. The developer will have a representative at the meeting. If the City Council agrees with this proposal it would be appreciated if you approve a motion to that effect.
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53 City of Breezy Point Staff Report TO: Mayor & City Council FROM: Kevin Merschman DATE: August 21, 2018 MEETING DATE: Septemter 4, 2018 SUBJECT: Ordering new 2019 squad early AGENDA ITEM: Background: Ford has announced that it coming out with a new squad design in 2020 with a price increase anticipated to be $4,000 to $7,000 depending on options. The last day to order a 2019 Explorer squad under current contract pricing is September 21, We traditionally replace one squad per year and the preliminary budget includes this expenditure. We planned to replace the 2013 Tarus next year. It took over seven months to obtain the 2018 and we may not be able to even get one in 2019 if not ordered early. We were one of the last to obtain a squad this year as Ford cancelled 2018 orders and retooled for the 2019 model. Requested Action: Advise if the PD should order the 2019 Explorer now with invoicing in 2019.
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